Single Touch Payroll
What is Single Touch Payroll (STP)?
Single Touch Payroll (STP) makes payroll and tax reporting to the Australian Taxation Office (ATO) faster and more efficient through an online payroll system. STP is a new regulation that modifies when and how businesses report salary, PAYG and superannuation information. Instead of submitting annual reports, businesses are now required to send a report every time they pay employees.
Click here to learn everything you need to know about STP.
Why transition to STP?
It’s important to make the switch now. ATO requires all businesses with 19 employees or less to upgrade or replace their payroll solutions by 1 July 2019. What’s important here? The changes are coming, and there are penalties.
How will STP impact your business?
- Reduces end of financial year activities because you will no longer need to prepare and submit annual payment summary report
- Sending payment summaries to employees won’t be necessary anymore because they will be able to access their information via myGov
- Provides a more streamlined and efficient reporting to the ATO
- Enhances transparency between you and employees with regards to their financial information
How will STP impact your employees?
- Easier access to their tax and super information
- Gains transparency for their total year-to-date income, PAYG withholding amounts and superannuation contributions
- Reduces the risk of getting behind on superannuation entitlements or PAYG
When is the deadline for switching to STP?
As of 1 July 2018, all businesses with more than 20 employees are required to report their employees’ tax and superannuation information via STP. By 1 July 2019, businesses with less than 20 employees will need to switch to STP.
If you’re one of thousands of businesses who need to replace or upgrade their payroll system to meet these obligations and still have little to go on, check out our helpful quick guide to Single Touch Payroll.