Are You Ready For Single Touch Payroll?

Single Touch Payroll (STP) is a new way for employers to report tax and super information to the Australian Taxation Office (ATO) and from 1 July 2019, is compulsory for employers with 19 or fewer employees.

What is Single Touch Payroll?

Currently businesses report employee payroll information to the ATO on an annual basis. With the introduction of STP, businesses with 1 or more employees will be required to report to the ATO after each pay event.

It is important to note that your current business payroll cycles and payment due dates for PAYG withholding and super contributions will remain unchanged.

What is reported through STP?

• payments to employees such as salaries and wages
• pay as you go (PAYG) withholding
• super information

ATO Compliant Software?

Software such as XERO will be required to lodge STP with the ATO. XERO currently includes payroll in all Business Editions and has announced it will soon be releasing a standalone payroll package for businesses who want to continue to use their custom built software and looking for a payroll solution.

What to do next for the introduction of Single Touch payroll!

Get Ready now!

1. Check your payroll software is STP ready
2. Check your payroll reconciles, you may want to engage a Registered BAS agent to assist with the reconciliation to ensure your records are correct prior to starting to report STP.
3. Check your employee information is accurate including name (as known by ATO), address, date-of birth, superannuation funds and member numbers.
4. Advise your employees to set up a myGov account. It is not compulsory for them to have one, however, they will not be able to see year-to-date tax and super information online without one. Payment summaries will no longer be issued by the employer as a summary of the information will now be available on the employees myGov account under Income statement.

If you need help getting ATO ready for STP, we recommend you contact Keryn Stack at “accounts all sorted” on keryn@accountsallsorted.com.au