Single Touch Payroll Commences for ALL Australian Employers from 1 July 2019
Single Touch Payroll Commences for all Australian Employers from 1 July 2019.
Single Touch Payroll (STP) is changing the way employers report to the Australian Taxation Office (ATO). STP becomes compulsory from 1 July 2019 for all employers.
What do you need to do?
STP will require you to have your payroll transaction data transferred to the ATO each time your employees are paid. This may require you to use a software solution that will transmit the data to and from the ATO on your behalf.
This payroll or reporting system must be STP Compliant, so that each pay cycle you can report the following items to the ATO:
- each employee’s name and tax file number (TFN)
- gross amount paid
- tax withheld on the gross
- ordinary time earnings for the period, and
- any superannuation guarantee obligations.
You will need to be using an online accounting program. If your accounting system is already automated with reports that can provide the information listed above for every pay cycle, all you need to do is confirm if your product is STP compliant and opt in.
Below are links from the leading software suppliers to assist in becoming STP compliant:
For those clients not using an online version of one of the above leading software providers, or who still have a manual payroll system, it is now time to discuss and review your internal processes.
Our advice is to become STP ready to avoid any fines or penalties from the ATO.