Are you Ready for Single Touch Payroll?

If you have more than 20 employees you must be prepared for Single Touch Payroll (STP).

The ATO will streamline business reporting obligations, STP is mandatory from July 2018.

How does it work?

When you pay your employees, the payroll information will be automatically sent to the ATO from your payroll solution.

Also under STP there will be no need to supply PAYG end of year summaries to employees.

There will be no need to provide annual reports and tax file number declarations to the ATO.

Important points to keep in mind for the transition to Single Touch Payroll (STP) include:

• From 1 July 2018, employers with 20 or more employees will need to start reporting through STP.
• To determine if they are required to report through Single Touch Payroll, you will need to do a headcount of your employees on April 1, 2018.
• When you pay your employees, you are required to report salary or wages, pay as you go (PAYG) withholding and super guarantee information to the ATO.
• As an employer, you have the option to invite your employees to complete tax file number (TFN) declaration and super standard choice forms online.
• Your payroll software may need to be updated to a version that supports STP. Check with your software supplier ASAP.
• If your payroll software is already STP enabled, you can begin to report through Single Touch Payroll now.

How Single Touch Payroll will work

Employee end-of-year PAYG information. It’s simpler!

When you report employee payment details through the STP, you will not be required to provide that employee with a payment summary at the end of financial year and the employee won’t be required to provide the ATO with a payment summary for the financial year.

You will need to notify the ATO when the payment summary data has been finalised ready for tax time.
The ATO will make payment information available to employees and their tax professionals through myGov, and as pre-filled information in their tax return.

If you would like to know more about STP, get in touch with us on 1300 888 803 or visit our STP page.

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