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Single Touch Payroll: An Update

Article By | | Accounting & Tax

STP reporting has been in operation for substantial employers (having 20 or more employees) since 1 July 2018 and from 1 July 2019, all employers will be subject to the STP reporting regime.

Employer obligations under STP reporting include:

  • Reporting tax and superannuation information for your employees to the ATO on or before each pay day.
  • Reporting the superannuation liability for each employee through STP. Your employees’ superannuation funds will report to the ATO once payment has been made.
  • Reporting finalisation declarations at the end of the financial year, thereby removing the need for payment summaries and payment summary annual reporting for STP payments.
  • Employees will be able to access their year to date payment information via myGov. Despite this access, payslips will still need to be issued.

To assist with the change, the ATO has been working with software developers to provide low cost STP solutions with a detailed list of suppliers available on the ATO website. Micro employers (having up to 4 employees) will be permitted to have their registered tax agent report quarterly on their behalf, rather than use a software solution.

In the lead up to the change, the ATO is hosting several STP webinars in February and March 2019 to assist employers. Details of the webinar series can be found here.

The application of STP to all employers will require a review of accounting systems and changes to payroll processes to ensure STP obligations are met. If you want to know more or need some assistance with your STP obligations, please contact your Altitude Adviser.