What is Single Touch Payroll (STP)?

Single Touch Payroll is a new system for reporting to the ATO on tax and superannuation obligations. It was introduced for larger employers from 1 July 2018 and starts from 1 July 2019 for employers with 19 or less employees.

How does it work?

Using payroll software or industry specific software that is STP ready, will allow the data (Employee’s salary & wage information, pay as you go (PAYG) withholding and Superannuation information) to be submitted to the ATO on your behalf each time you pay your employees.

Payment Summaries will be a thing of the past as all reported information will be available to your employees through the Governments ‘myGov’ accounts. Each time you pay an employee and report through STP their myGov will be updated.

STP works in most cases by using your existing software and the good news is there is no need to change the current pay cycles- weekly, fortnightly, monthly- they will all work! This is the Governments way of catching up with the digital world, just like banks, shopping online, online booking systems, etc and it’s about time.

What about me, it isn’t fair, I only have 1 employee…

For micro employers, having between 1 and 4 employees, there are a number of options to help transition to STP.

What should you do now?

Most clients have been contacted by one of our team members by now to discuss the new arrangements and to ensure you are ready. If you haven’t been contacted or you have any queries, please phone Greenview Accounting Group on (03) 5629 6133.