Single Touch Payroll (STP) is a reporting change for employers being introduced by the Australian Taxation Office (ATO).
It is designed to improve visibility and timeliness of payroll processes and to streamline employer payroll reporting to the ATO.
From 1 July 2018, if you have 20 or more employees, you’ll need to use STP-enabled software to report your tax and super information to the ATO.
You’ll need to report the following on or before your payroll pay day:
employee payments such as salaries and wages
pay as you go (PAYG) withholding
super information, such as Superannuation Guarantee (SG) and salary sacrifice payments
If you have 19 or fewer employees, STP will be optional until 1 July 2019 (at which time it will become mandatory).
What you need to do
There are a number of steps you can take to be STP ready.
Talk to your payroll software provider to find out when your STP-enabled software will be ready
Ask your tax professional or payroll service provider how to get ready
Review your current payroll processes to see if they can be updated
Start developing an implementation plan
MTAA Super contributions
STP is a separate process to the payments of your super contributions. You can continue to use Employer SuperSite or QuickSuper to pay your contributions as per usual. Your current default or employer-preferred super fund arrangements will also remain the same.
Visit the ATO website to find out more about how to get ready (including checklists and videos), upcoming STP events, and how to ask for more time if you won’t be ready by 1 July.