Single Touch Payroll Update
Single Touch Payroll (STP) was introduced on 1st July 2018 for all businesses with 20 or more staff (substantial employers).
The Bill to extend the Single Touch Payroll (STP) reporting requirements to all employers, regardless of the number of employees has now passed the Senate and will be Law.
Smaller organisations with less than 20 employees are now required to comply with STP as of 1 July 2019.
What you need to know
STP will require you to report your payroll transaction data to the ATO each time your employees are paid.
The payroll or reporting system must be STP Compliant, so that the below details can be reported to the ATO every pay run.
- Each employee’s name and tax file number (TFN)
- Gross amount paid
- Tax withheld on the gross
- Ordinary time earnings for the period, and
- Any superannuation guarantee obligations.
Further concessions apply for employers with four employees or less (micro employers). These employers will be allowed to rely on a registered tax or BAS agent to report quarterly for the first two years, rather than each payroll period.
The ATO recognises that some smaller clients may not have software systems currently in place. Therefore the ATO have granted a 3 month transition period until the 30th September 2019, to allow small employers (less than 20 employees) to find the right solution for their business.
The ATO have compiled a list of cost effective STP Solutions for micro employers and can be found here.
What to do now
If your software is already automated that can provide the above listed information every per pay cycle, all you need to do is confirm if your product is STP compliant.
If your system is still manual it is now time to discuss your reporting options to avoid any penalties in the future.
In the event that you need a software solution or want to review your current reporting system, we are happy to discuss the most cost effective solution for you.
We are here to help you through the process, so please do not hesitate to contact us.
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