Single Touch Payroll 1 July 2019

Tax and super reporting to the ATO

Single Touch Payroll (STP) will be the new way you will report tax and super information to the ATO from 1 July 2019. 

 

  • If you have 20 or more employees you should already be reporting through STP, or have applied to the ATO for an extension
  • If you have 19 or less employees reporting via STP starts 1 July 2019.

 

How STP Works

STP works by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll.

When you start reporting:

  • you will run your payroll, pay your employees as normal, and give them a payslip
    • your pay cycle does not need to change (you can continue to pay your employees weekly, fortnightly or monthly)
  • your STP-enabled payroll software will send the ATO a report which includes the information the ATO needs from you, such as salaries and wages, pay as you go (PAYG) withholding and super information

You will be reporting super liability information through STP for the first time. Super funds will also be reporting to the ATO. They'll let them know when you make the payment to your employees' chosen or default fund. This is an important step toward making sure employees are paid their correct entitlements.

The way STP information is sent will depend on the software you use. STP reporting will be offered in one of the following ways with:

  • an end-to-end solution, which allows you to run your payroll and send the STP information directly to the tax office from your software
  • a solution which allows you to run your payroll and send the STP information through a third party sending service provider (SSP) which is integrated into your software
  • a solution that allows you to run your payroll and requires you to send the STP information through a third party sending service provider (SSP) outside your software.

ATO systems will match the STP information to our employer and employee records.

Your employees will be able to see their year-to-date tax and super information in ATO online services, which can only be accessed through myGov. Their data is updated every time you report (each pay day for most employers). Without STP reporting, employee data is only reported at the end of the financial year.

If you make mistakes in your STP report, you can correct it in your following report. You won't be penalised for making mistakes you correct.

At the end of the financial year, you'll need to finalise your STP data. This is a declaration to the Commissioner to state you have completed your reporting for the financial year.

You will no longer have to give your employees a payment summary for the information you've reported and finalised through STP. Once you finalise your data, your employees or their registered agent will be able to lodge their income tax return using the STP information available in ATO online.

You will no longer need to provide the tax office with a payment summary annual report (PSAR) at the end of the financial year for the payments you report through STP.

 


"The biggest change to the Australian economy since the introduction of GST"

Anon.

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