Single touch payroll

Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO in real time with each pay run.

What is it?

Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO in real time with each pay run.

Benefits include streamlined data reporting and real time access to wage data by employees, superannuation funds and the ATO.

How does it work?

STP works by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll. You will need ensure that you have STP-enabled payroll software which will send the ATO a report including information such as salaries and wages, pay as you go (PAYG) withholding and superannuation with each pay run.

The data that is sent to the ATO will include information for the current pay run as well as year to date information. If you have had to make changes to a prior pay run, the changes will be picked up through the year to date information the ATO receives.

The ATO will then match the data they receive from employers to their employees. This will enable employees to access their year to date tax and super information in MyGov in real time. Employers will also be able to see the information they have reported through STP in the Business Portal.

What processes will change?

Once employers are STP compliant and sending data to the ATO with each pay run, they will no longer be required to provide payment summaries to their employees at the end of the year. Employees will be able to access their year-end information directly from their MyGov account, accountant (through the tax agent portal) or request a payment summary directly from the ATO (if required).

When do the STP reporting obligations begin?

1. If you employ more than 20 employees - 1st July 2018 - You should already be complying with STP obligations.

2. If you employ between 5 and 20 employees - 1st July 2019 - You can start reporting with STP now if your software is already set up.

3. If you employ less than 5 employees - 1st July 2019 - The ATO has put in place reporting concessions allowing you to report your STP data once every quarter which is due on the same day as your Business Activity Statement (BAS).

What do I need to do?

If you use payroll software, you will need to make sure your software is up to date so you're ready to start reporting with Single Touch Payroll in July 2019.

If you have the latest version of your software, or use an online accounting package such as Xero, MYOB Essentials or MYOB AccountRight, you'll need to register directly with the ATO in July 2019 so you can start reporting.
If Hamilton Morello completes your BAS and reconciles your payroll data, speak with your normal contact to find out more information.

How can we assist?

If you have any questions regarding Single Touch Payroll, please call your regular contact at Hamilton Morello.