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What do you know about single touch payroll?
Many business owners and payroll officers would by now be hearing the term Single Touch Payroll or STP frequently, but what is it all about?
The ATO has changed the way employers report employees’ tax and superannuation information to them. Your payroll software can now directly send this information to the ATO at the end of each pay cycle. This legislation came into effect 1 July 2018 and is required for employers with 20 or more employees, even if these numbers drop to 19 or less throughout the year. Employers with 19 or fewer employees have the option to start STP if they wish but are not required to do so even if their numbers rise during the year. Employers will need to do a headcount again on 1 April 2019 to determine their requirements.
What does this all mean for my business?
- Employees will be able to then access year to date tax and super information through their myGov account. This information will be updated after every pay cycle when STP has been electronically submitted to the ATO.
- Payment summaries are a thing of the past, employers will no longer be obliged to present summaries to their employees, instead, this information will be automatically prefilled through your myGov account. Payment summaries will now be called an ‘Income Statement’
- STP is being introduced gradually, some employees may still choose to issue payment summaries for the first year.
Want to know more about how Single Touch Payroll will affect you? Not sure how to get STP up and running?
Check out another recent blog in this category.
Need help setting up STP?