Single Touch Payroll is a new way of reporting payroll information which came into effect 1 July 2018
What is STP?
Payroll data must now be submitted directly to the ATO each pay cycle. This must be submitted electronically. Wages, PAYG withholding, deductions, allowances, superannuation and any other items included in the payrun are required to be reported directly to the ATO
Who is required to report using STP?
From 1st July 2018, only Substantial Employers are required to report to the ATO using STP. A substantial employer is one that employs 20 or more persons. To find out if you are a substantial employer, count the number of employees on your payroll at 1 April 2018 (do not include terminated employees). If you have 20 or more employees, you must begin lodging STP on 1 July 2018
All other employers must report STP from 1 July 2019. There are a small number of exempt employers. Click this link for a list
How do I lodge using STP?
If you are using an accounting system for payroll, your system will be able to lodge to the ATO. You must first obtain an Auskey. Once you have an Auskey, contact the ATO to register for STP. Once registered, you may report STP to the ATO using your accounting system.
You may use a third party provider such as a BAS agent to lodge your STP. There are a number of options available to you. If you do not use an accounting system, you may outsource the lodgement to a third party and authorise them to lodge on your behalf (similar to BAS lodgement). You may also lodge using the Business Portal and your Auskey. Contact us for more information
Are there penalties for not using STP?
There will be penalties imposed on employers that do not report their payroll to the ATO using STP. For the first 12 months of the program, no penalties will be issued for employers that fail to lodge on time.
Why do we need to report to the ATO using STP?
The ATO will use the information you report about your employees in many ways. Superannuation funds will now report to the ATO when you have made a payment. Employers that avoid paying superannuation will be followed up, which creates a more level playing field for all employers. Payroll data will automatically appear in employees’ mygov account and pre-populate on their tax returns. There will be no more need for an annual payment summary to be given to employees.