What is Single Touch Payroll?
Single touch payroll (STP) is a reporting change for employers that the Australian Government are currently rolling out. Essentially it is streamlined reporting from your accounting software directly to the ATO.
What this means for you the employer
From 1st July 2018, if you have 20 employees or more, you can say goodbye to end of year ATO reporting for payroll. Information typically provided to the ATO at the end of financial year such as salary and wages, pay-as-you-go PAYG withholding and superannuation must now be reported to the ATO when you pay your employees, every time that you pay them.
How can you report?
To prepare, check with your respective accounting software providers if they will be compliant by the deadline. Employers may need to consider updating their accounting software to report through STP. Most accounting software platform providers like Xero, MYOB and Quickbooks are currently working to be compliant by the deadline and are keeping customers updated on their progress.
The Australian Government has announced it will expand Single Touch Payroll to include employers with 19 or less employees from 1 July 2019, subject to legislation being passed in parliament.
Not sure where to start?
Contact one of the friendly team at FAJ Bookkeeping to assist with accounting software compliances.
Author: Jasmina Nesic – Senior Bookkeeper