Single Touch Payroll (STP) is a new legislation that was implemented on 1st July 2018 for employers with 20 or more employees.
STP is designed to streamline the administration of employee payroll, tax and superannuation obligations for employers.
It’s been touted as a good reason for businesses of all sizes to look at and improve internal processes and potentially review their payroll software for a better model. As we all know, any enhancement in your processes can only be a good thing for your business.
So, what are the facts?
- When you start reporting through STP you will send your employees’ payroll and super information to the ATO from your payroll solution each payday.
- Your payroll cycle will not change. You can still pay your employees weekly, fortnightly or monthly.
- Your payment due date for PAYG withholding and super contributions will not change. However, you can choose to pay earlier.
- You may not need to provide your employees with a payment summary at the end of financial year for certain payments you report through Single Touch
- Payroll. The ATO will make that information available to employees through myGov.
- You will have the option to invite your employees to complete Tax file number declaration, Superannuation standard choice form and Withholding declaration online. This feature will not be available immediately.
- When you report to the ATO through Single Touch Payroll, your employees will be able to view their year-to-date tax and super information through myGov
For more information on STP and to find out if you’re doing everything you should be doing, visit the Australian Taxation Office website.