Single Touch Payroll - What is it and how does it affect me?
19 December 2017
The Australian Government has committed to enforcing Single Touch Payroll (STP) reporting, employers with 20 or more employees being required to be reporting from 1 July 2018 and all businesses required to be compliant by 1 July 2019.
At 1 April 2018 employers are required to have a headcount, and if at that date they are paying wages to 20 or more employees then they will need to ensure that their payroll software supports Single Touch Payroll reporting which will commence on 1 July 2018.
All software vendors are in the process of adapting their software to become STP compliant, however there are no firm release dates at this point. Please keep an eye out on further Boyce or vendor communications closer to the date.
So what does this mean?
STP reporting means that when an employer processes their payroll for a period it will automatically send tax and super information for each employee to the ATO. Employers will still need to complete their activity statement as normal, however pay as you go tax information will be pre-filled from the information sent through STP.
Employers will not need to lodge a yearly payment summary for employees once they are using payroll software which supports STP. If your payroll solution does not become compliant by the deadline, an ATO deferral is possible if the solution is in the process of becoming compliant.
To find out more on how to ensure you are ready for Single Touch Payroll reporting from 1 July 2018 or 1 July 2019, please contact your local Boyce accountant.