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.
- 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 wages
- pay as you go (PAYG) withholding
- super liability information.
How to report for Single Touch Payroll?
It is recommended to use an accounting software to report for Single Touch Payroll for each pay period.
What if I don’t have an accounting software?
You can find some cheap to no-cost ways of reporting here;
If you need an accounting software you’re in luck. POP offers a lifetime 20% discount on Xero accounting software subscriptions.
When do I report for Single Touch Payroll?
You are required to report on or before the date of payment to your employees. If the date of payment is not stipulated, it is the intended date of payment.
It is good habit to submit the payroll information for Single Touch Payroll when you are sending your employees their payslips if it is on or before the date of payment.
ATO Single Touch Payroll.
Need a hand?
POP Business are experts in Single Touch Payroll and can assist you with payroll services or simply, being STP compliant.
Get in touch if you need a fast and affordable payroll experience.