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What is Single Touch Payroll?
Single Touch Payroll or (STP) is a way of sending your employees’ salaries and wages, allowances, pay as you go (PAYG) withholding and superannuation information to the ATO from your payroll software every time you pay your employees.
Who should be using STP?
If you have 20 or more employees, you will have needed to report through Single Touch Payroll from 1 July 2018.
If you have 19 or less employees, you will need to report through Single Touch Payroll from 1 July 2019, subject to legislation being passed.
How to report your STP obligations.
STP reporting is currently available through your payroll and accounting software solution, such as Xero. Don’t worry if you aren’t using Xero yet, as various software providers are also offering STP-enabled products. What are the benefits for both employers and employees?
Less end of financial year paper work!
Employers do not need to provide employees with a payment summary at the end of financial year for payments reported through Single Touch Payroll.
Employers will no longer need to provide the ATO with a payment summary annual report at the end of the financial year for the payments reported through STP. Employees payment summary information will be available in myGov at the end of the financial year and progressively throughout the year each and every time they are paid.
Please don’t hesitate to contact one of our award winning advisors if you’d like to discuss Single Touch Payroll.