20 Jun Single Touch Payroll Factsheet
What is Single Touch Payroll (STP)?
The ATO have introduced STP as the new way to report tax and superannuation information. This reporting will provide the employee’s tax and superannuation each time a payroll is run.
Who does it apply to?
The ATO have phased in STP reporting with large employers of 20 or more employees from 1 July 2018 and have made the requirement that all small employers with less then 19 employees begin reporting from 1 July 2019.
***Note: Employers who are closely held (i.e. only pay wages to family members or directors) have an extension to begin reporting from 1 July 2020 and then can lodge their activity statements through BellchambersBarrett quarterly.
Which employees need to be included?
All employees are required to be included in the STP report. Only if a contractor has provided their ABN, they are not included in the STP report.
What are the benefits?
The STP reports will replace the need for providing employees PAYG Summaries at year end and aim to simplify the process. A reconciliation report will need to be completed at year end however nothing will need to be provided to employees.
How to become compliant?
All the major software providers (Xero, MYOB & Reckon) are STP compliant. For businesses that do not use an online software for their bookkeeping, there are numerous providers that will charge $10 per month. As BellchambersBarrett uses Xero for our practice software, we would encourage businesses to use Xero.
Where can I find more information?
Please contact your tax advisor at BellchambersBarrett who will be able to discuss Single Touch Payroll in further detail and assist tailoring the best approach for your business.
Further information can be found from the ATO at: