Single Touch Payroll (STP) is rolling out for all employers 1 July 2019. For those with 20 or more employees, you should already be reporting STP, for those with under 20 employees, below are a few tips to help make sure you are STP ready.
About Single Touch Payroll
- Each time you pay your employees you will need to report the year-to-date salary and wage information, PAYG withholding and super information to the ATO.
- STP does not change your payroll cycle or PAYG withholding and super contribution payment due dates
- Full details of mandatory and voluntary information to be reported on STP can be found in the ATO guidelines – click here
- If there is an error in your lodged reports you will have to lodge an update event within 14 days of identifying the need to correct or in the next regular pay event where the affected employee(s) have continuity of employment
- Employers will no longer be required to provide Payment Summaries at the end of the financial year, payments will be included on a finalisation declaration. This declaration is made by providing a finalisation indicator for an employee as part of your STP reporting. Your employees will then be able to view this information as ‘tax ready’ in myGov
- Superannuation liability information will be reported through STP. Super funds will also report to the ATO once payments have been made. This does not change your existing SuperStream obligations
How will you report through STP?
- Your accounting or payroll software may already offer STP reporting as part of your existing software or as an additional service
- You may ask a third party such as a registered Tax or BAS agent to report on your behalf through STP enabled software for you
- The ATO provides a list of no-cost and low-cost STP solutions – click here
Make sure you are STP ready
- Check your employee records are accurate and complete in your STP software. This is also a good time to review your pay templates to make sure superannuation, PAYG withholding and other pay amounts are calculating correctly
- You will declare the information is true and correct each time you submit a pay event or an update event through STP, so ensure you have a standard process in place to verify this data
- Ensure you talk to your key staff who will be responsible for running your payroll and make sure they have any necessary authorities in your payroll software
- Once you submit your first pay event, you should be able to check your software for a successful status indicating the report was sent to the ATO. You can check the ATO Business Portal for prior lodgements (allow 72 hours for processing)