What is Single Touch Payroll (STP)?
Single touch payroll is a change in the way employers will report their employees pay to the ATO. Instead of lodging a PAYG payment summary each year, employers will now be required to report each pay electronically to the ATO.
When does Single Touch Payroll start?
All businesses are required to report via STP from 1 July 2019.
How do I get started?
If you use cloud bookkeeping software such as Xero, QBO or MYOB the payroll function of these programs allows you to report via STP. You will need to activate the STP section of the payrun, then your process will be similar to previous pay runs.
If you don’t have cloud bookkeeping software then you will need to adjust your payroll solution. There are a number of software providers who provide a payroll solution which is STP compliant for $10 per month.
Employers who have under 4 employees also have the option of reporting their wages through a BAS or Tax agent quarterly.
How does it affect my employees?
Employees will be able to log in to their My Gov accounts to view the amount of pay they have received and the amount of super which is due to them. They will no longer receive an annual PAYG payment summary from their employers, instead this information will prefill into their tax returns and be available on their My Gov account.
Can I start early?
Yes, and we recommend it. With 771,000 small businesses who employ in Australia there is likely to be a mad rush in June for everyone to be set up. By setting your STP payroll up early, if you need to ask the software provider a question you are likely to avoid the long waits which will be around in June.
Want to know more?
Contact Red Spark Consulting today