Single Touch Payroll
6 June 2018
Single Touch Payroll (STP) is a reporting change for employers to streamline payroll reporting to the ATO. As an employer, you will be required to report payments such as salaries and wages, pay as you go (PAYG) withholding and superannuation information to the ATO through STP enabled software. You will report to the ATO each time you pay your employees. This change aligns ATO reporting to your pay cycle. Your pay cycle does not need to change and you can continue to pay your employees as you currently do such as weekly, fortnightly or monthly.
STP will come into effect from 1 July 2018 for employers with 20 or more employees and is intended to be expanded to include all employers from 1 July 2019, subject to legislation being passed in parliament.
What you need to do
As an employer you will need to conduct a head count of employees as at 1 April 2018. The head count is based on the actual number of employees and not full time equivalent employees (FTE’s) ie includes full time, part time, casual employees (on your payroll at 1 April and worked anytime through March), employees absent on leave, and seasonal employees. This is a self-assessment and does not need to be reported to the ATO.
If you have more than 20 employees, you will need to update your payroll software to start STP reporting by 1 July 2018. If you do not use a payroll solution, you will need to choose one that offers STP or talk to us and we can help you.
Payroll software Compliance Status
Below is a list of common software used and their compliance with STP:
Xero - Will be compliant by 1 July 2018. Auto deferral in place until 31 December 2018 and Xero will stagger release from 1 July 2018 to 31 December 2018.
MYOB AccountRight Live - Will be compliant by 1 July 2018.
MYOB AccountRight v19 - Will NOT be compliant – Auto deferral until 31 May 2019 in place if multi-currency is being used. Please contact us to discuss upgrading to AccountRight Live to ensure that you are compliant.
MYOB AccountEdge - Will NOT be compliant – Auto deferral until 31 May 2019 in place as MYOB solves this issue.
MYOB Essentials - Will be compliant by 1 July 2018.
Quickbooks Online - Will be compliant by 1 July 2018.
ePayDay (Phoenix) - Will be compliant by 1 July 2018.
The ATO has communicated that there will not be any blanket extensions given on these dates. If extensions are required they will need to be applied for and will be assessed on a case-by-case basis.
Frequently asked questions
Will a BAS or IAS still need to be submitted?
Yes, however W1 and W2 figures will be pre-filled.
Will I be able to adjust the pre-filled values on my BAS?
Will I still need to submit an annual payment summary report?
If STP is being used, you may not be required to submit this.
Will I still need to generate payment summaries for my employees?
If STP is being used, they may not be required to submit this and employees will be able to access the information on myGov.
Can I make PAYG or superannuation payments through STP?
No, it is for reporting only.
Can I use STP even if I am are not required to?
Can a bureau or payroll provider or registered BAS agent submit STP data on my behalf?
Can I make corrections if it is wrong?
Yes, through an ‘updated event’ or in the next regular pay event.
What happens if I report late?
The first 12 months will be exempt from penalties unless advised by the ATO otherwise. After this administrative penalties will be applied.
If you would like more information please check the ATO website or contact your local Boyce accountant.