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.
IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (QLD) Pty. Ltd. ABN 81 601 145 215. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (QLD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (QLD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (QLD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (QLD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.