In February, the Federal Government passed legislation to extend Single Touch Payroll reporting to include all small employers (those with 19 employees or less).
What Is Single Touch Payroll?
Single Touch Payroll (STP or One Touch Payroll) is an ATO initiative that encourages more frequent salary reporting.
Through this initiative, employers will report:
- Payments (salaries and wages)
- PAYG withholdings; and
- Superannuation
From 1 July 2018, STP became mandatory for Australian small business owners with 20 or more employees. However, from 1 July 2019, this will expand to include businesses that employ 19 or less employees.
How Will This Change the Way I Pay My Employees?
The way you pay your employees won’t change. However, you will be required to send an online report to the ATO each time they are paid. You can start reporting via STP any time from 1 July to 30 September 2019. Those that can’t meet this timeframe will need to apply for a later start date.
How Do I Get Started?
Reporting through Single Touch Payroll is done online so you’ll need suitable payroll software before you can start. If you already use payroll software, check with your provider to see that it offers STP reporting.
For those that don’t use payroll software, make sure you choose one with an STP ready solution. The ATO has published a list of low and no-cost reporting solutions on their website at ato.gov.au/stpsolutions.
Alternatively, your registered tax or BAS agent can report through an STP ready payroll solution on your behalf. For more information on Single Touch Payroll, contact Edney Ryan Chartered Accountants on (02) 9908 9888.