For employers with less than 20 staff, Single Touch Payroll (STP) is just around the corner. While initially intended to begin on 1st July 2019, the ATO has allowed such employers to begin any time before 30th September 2019. A further extension period of up to 12 months is available, but employers need to apply.
Single Touch Payroll is a new way of reporting tax and super information to the ATO. Using payroll software, or another solution that is STP ready, employers send their employees’ salary and wage information, pay as you go (PAYG) withholding, details of Reportable Fringe Benefits and Reportable Employer Superannuation Contributions, and super information, to the ATO each pay period.
What will it mean for employers?
For employers, the STP system will mean that:
• Pay cycles do not need to change (you can continue to pay your employees weekly, fortnightly or monthly);
• Super information will be reported to the ATO (in addition to the current Clearing House reporting)’
• You will you no longer need to give employees a payment summary for the information reported and finalised via STP – this will be available to your employees on myGov.
Talk to us about how we can help you be ready for this significant change.