Single Touch Payroll is a new way of reporting payroll information which will come into effect 1st July 2018
What is STP?
Your software will upload your payroll data each pay cycle to the ATO: Wages, PAYG withholding, deductions, allowances, superannuation and any other items included in the payrun are required to be reported directly by your software if you are considered a ‘substantial employer’
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
Other employers may choose to report STP voluntarily after this date. However, legislation is in the process of being passed that will extend the STP lodgement program to all employers on 1 July 2019
How do I lodge using STP?
Accounting software packages are currently writing modifications to allow you to lodge your STP directly with the ATO. Like our facebook page to find out when your software is STP ready. We will post updates. Once your software is compliant, you will be provided with information on how to lodge using your software online. If your software is not compliant, you will need to contact the ATO to request 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.