STP: what you need to know
On 1 July 2018, changes to the way businesses report information to the ATO will come into effect. Specifically, businesses with more than 20 employees are now required to report the tax and super information to the ATO each time they pay their employees.
It is now time for businesses with less than 20 employees to ensure they are Single Touch Compliant from 1 July 2019.
About Single Touch Payroll (STP)
Single Touch Payroll has been designed to streamline the reporting process. You can continue to use your current payroll software, however you will need to ensure it is updated to offer STP reporting. If you are unsure you should contact your provider.
Using STP, the following information must be reported to the ATO on or before the day you withhold from a payment:
- payment information, including salary or wages, allowances, deductions etc.
- withholding amounts
- superannuation liability information or ordinary time earnings (OTE)
Your payroll cycle will not change. As part of STP, you may not need to provide employees with a payment summary at the end of each financial year for certain payments you report. This will be made available to employees through myGov.
For more information, contact the HR in Practice Service on 1300 138 954 or the ATO on 13 28 61.
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