Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO. The requirement first came into effect 1 July 2018 for employers with over 20 employees, and now parliament has passed legislation to extend STP to all employers starting 1 July 2019.
This will be a gradual start, and not all employers will start reporting at the same time. Find out when you need to start reporting and what kind of employees are exempt in the 2019-2020 financial year by visiting this page.
STP works by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll.
STP reporting is currently available through payroll, accounting and business management software. If you’re not sure whether your software has a deferral, check with your provider. If you have four or fewer employees, you can see a list of low-cost options on the ATO website here.
“This year will be a year of transition,” said ATO Commissioner Chris Jordan.
“We will take a very reasonable approach to this. We expect people to take a while to come on.”
Chris assured employers that there will be no penalties for mistakes, missed, or late reports for the first year. He said they would be open to providing class exemptions, and that they would take a reasonable approach to individual circumstances.
“What I want to see is the long term benefits of Single Touch Payroll. We’re not interested in jumping out there in the first year or so waving a finger at people saying you haven’t done this quick enough.”
For the guide about how to prepare for STP, click here.
To learn more about Single Touch Payroll, visit the ATO website.
If you don’t think you will be able to comply by July 2019, you can apply for a deferral.