Single Touch Payroll and your employees
Single Touch Payroll is now a reality for the monthly reporting process, as all businesses are required to comply from 1 July 2019. Are you ready?
Single touch payroll (STP) reporting has changed the way businesses report salary and wages, PAYG withholding and superannuation contribution information to the ATO.
All businesses must now report
For the 2018-19 financial year, businesses with 20 or more employees were required to use STP, while smaller businesses could opt-in.
From 1 July 2019, all businesses will need to report through STP although there is some leniency for micro businesses struggling with implementation.
How do you report for STP?
A range of no-cost and low-cost Single Touch Payroll (STP) solutions are being made available from early 2019 in addition to existing commercial STP solutions.
The no-cost or low-cost solutions have been developed for micro employers (those with one to four employees) who need to report through STP but do not currently have STP ready software. These solutions may include mobile apps, simple reporting solutions and portals.
A full list of tools that are STP-ready are available on the ATO's STP information page, however if you aren't sure whether your system is ready or how to report, speak to our team on 02 9957 4033.
Income statements for your staff
STP means that employers will no longer issue Payment Summaries, instead a finalisation declaration will generally need to be made by 14 July (the deadline is 31 July 2019 for businesses using single touch payroll for the first time in 2018-19).
If your business used STP in 2018-19, your staff can access their Income Statement from myGov where they will be able to see their year to date tax and superannuation information within a few days of being paid.
Not up and running for Single Touch Payroll?
Contact us on 02 9957 4033 to speak to our team as soon as possible to get your business ready for STP reporting.
Get ready for STP with the ATO's readiness checklist
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.