Single Touch Payroll (STP) – An ATO initiative to simplify your payroll system
What is Single Touch Payroll?
Single Touch Payroll is a Pivotal moment for both ATO and Employers. It is the biggest payroll reporting change in Australian history for all Employers. STP is a method of reporting Payroll data electronically to the ATO. It will enable employers to report payments such as wages and salaries, PAYG Withholding and Super Information directly to the ATO at the same time when employees are being paid.
Who is affected?
- STP reporting framework will be mandatory from 1st July 2018 for Business with 20 or more employees. It is important to note that Employer needs to do a headcount by April 1st 2018 to determine if they have 20 or more employees.
- STP is optional for employers with 19 or less employees as it is not required at this stage, but they can report voluntarily by using updated payroll software.
- Employers with 19 or less employees have another year to prepare, however from 1st July 2019 employers will need to Start Reporting through STP. This will be subject to Legislation being passed in Parliament.
To know more about STP and how it may impact your business contact us on 1300 360 749 or click here for contacting a consultant.