Single Touch Payroll
Single Touch Payroll (STP) is a reporting change for employers.
It means you will be able to report payments such as salaries and wages, pay as you go (PAYG) withholding and superannuation information to the ATO directly from your payroll solution each time you pay your employees.
When do you need to get ready?
- If you have 20 or more employees you will be required to report through STP from 1 July 2018.
- If you have 19 or less employees, you will be required to report through STP from 1 July 2019, subject to legislation being passed in parliament.
How do you get ready?
- Count the employees you have on your payroll on 1 April 2018 to determine if you have 20 or more employees. The ATO has a guide to help you count your employees.
- Update your current payroll solution to a version that is Single Touch Payroll-enabled. Xero, Reckon, MYOB, QuickBooks and Attache will all be enabled for STP reporting by 1 July 2018. If you use another software provider, you will need to confirm if they will be enabled for STP.
- If you do not currently use a payroll solution, you will need to choose one that is enabled for STP reporting by 1 July 2018.
Review your business processes before STP starts
- Make sure the right people in your business know about STP – especially your payroll staff.
- Check if you are paying your employees correctly
- Check if you are calculating your employees’ super entitlements correctly.
- Check if you are addressing overpayments correctly.
- Is your employee information accurate, including names, addresses, date-of-birth records?
Timeline for Single Touch Payroll
Count the employees you have on your payroll on 1 April 2018 to determine if you have 20 or more employees.
STP reporting will be mandatory for employers who have determined they have 20 or more employees on 1 April.
Employers with 19 or less employees will start reporting through STP – subject to legislation being passed in Parliament.
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