Single Touch Payroll – what is it?
Single Touch Payroll or STP is a new system whereby all employers are required to submit payroll data to the ATO on the same day that they pay their employees.
What data is reported to the ATO?
Employees names, tax file numbers, gross wages, tax withheld and superannuation are all reported to the ATO with each an every pay run.
Do I have to use Single Touch Payroll?
Yes, STP is mandatory for all Australian businesses from 1 July 2019
What do I need to do?
Firstly, your business needs to enrol into STP.
From here on in your payroll software will ask you to submit the required data to the ATO after every pay run.
Is it hard to do?
If you are using Xero, this will be easy.
Why do I need to do this?
This is an initiative that has come down directly from the ATO. This will ensure the ATO will have regular updated information throughout the year. This will ensure transparency with employees data to the Tax Office.
Is STP going to cost me anything?
Your existing payroll software should include this functionality as part of your subscription. If you do not currently have payroll software, we recommending speaking with us to discuss your options.
What are the downsides to STP?
So long as businesses are doing the right thing by their staff, there is none.
Does this affect when I actually need to pay the payroll?
No all payments to your staff and to the ATO can be paid on the existing schedules.
How often will I need to send this data to the ATO going forward?
Every time you pay your employees.
Do I still need to submit a BAS?
Yes, Single Touch Payroll has no effect on Activity Statements.
Will I still need to give my employees PAYG Payment Summaries (group certificates) ?
No, STP will ensure all of this information is submitted to the ATO at the end of the year and available to your employees tax accountant or on My.Gov
Shaun explains the basics of Single Touch Payroll in the below video:
Have any questions?
Feel free to contact us by calling 03 8609 9226 and ask away, there’s also some great videos from Xero here.
If you’d like to receive these kind of videos in your inbox, as well as other important information and due dates for your business, sign up to our newsletter here.
It’s not a boring accounting email, we try to cater it to what our clients want to see!
