Australian Taxation Office Single Touch Payroll: Will You Be Compliant Before 30 June 2019?
- Tuesday, March 26, 2019
Single Touch Payroll (“STP”) is the most significant change in Australian Taxation Office (ATO) reporting obligations since the introduction of GST. There are some steps that employers, who are not already reporting under STP, need to be take in order to be ready. Please read on below.
What is STP?
STP is a new initiative by the ATO whereby employers are required to report payroll information to the ATO electronically with each pay run. The information reported by employers includes data such as:
As part of the initiative, the ATO will receive data from superannuation funds including receipt of superannuation contributions. This will allow the ATO to closely monitor payment of employee superannuation.
Compliance with STP reporting obligations commence from 1 July 2019 for all employers. Some exemptions apply.
What do I need to do as an employer to be STP compliant?
For employers who already use payroll accounting software such as Xero, MYOB or QuickBooks Online, you will need to connect to ATO services through your payroll accounting system. The detailed steps can be found within the following links:
If you use an alternative payroll software provider, it is important to check for compliance with STP obligations as some providers have stated that they will not be updating certain products.
If you are an employer that does not currently use payroll software, you are required to choose a software provider which offers STP compliance. There are a number of providers offering low cost solutions, so please talk to your WMS contact for options.
There are additional administration benefits to you, including:
Should you have any questions in relation to your STP obligations, please get in touch with your WMS advisor.