ATO Single Touch Payroll

ATO Single Touch Payroll

Single Touch Payroll (STP), is a new way of reporting tax and superannuation information to the Australian Taxation office (ATO).

With STP you report employees’ payroll information – such as salaries and wages, pay as you go (PAYG) withholding and super – to the ATO each time you pay them through STP-enabled software.

When and how you
report depends on what type of employer you are:

  • Small employers with 19 or fewer employees – STP reporting started from 1 July 2019.
  • Large employers with 20 or more employees – you should already be reporting through STP.

So, what’s different?

Previously, you would submit the payroll information at year-end via uploading an “EMPDUPE” file. This would advise the ATO what each employee earned during the financial year.

Now with Single Touch Payroll, whenever you pay employees, you are required to report what you are paying each employee in real-time.

There is no longer a need to lodge the annual group certificates at year-end as the ATO have the all payroll information during the year via STP Reporting.

How does it work?

Single Touch Payroll works by sending employee wages information from your STP-enabled payroll or accounting software to the ATO as once you have processed the payroll for the period.

You will:

  • run your payroll
  • pay your employees as normal
  • give them a payslip.
  • Submit the wages to the ATO

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;

  • salaries and wage