Single Touch Payroll (STP) is an Australian government initiative that changes the way businesses report payroll information to the Australian Taxation Office.

Salary and wages, pay as you go (PAYG) withholding and superannuation data is sent electronically from your payroll solution directly to the ATO at the same time as you pay your employees.

Mandatory STP reporting commenced on 1 July 2018 for employers with 20 or more employees. For employers with 19 or less employees, the deadline is 1 July 2019.

Page Business Solutions has assisted hundreds of clients in successfully lodging their STP batches to the ATO with our STP solutions.

 

What is changing under Single Touch Payroll?

Under Single Touch Payroll, employee payments will be reported electronically to the ATO with every pay run, eliminating the need for annual reporting including payment summaries. STP also impacts your Business Activity Statement (BAS) and can be used for onboarding forms for new staff.

The key changes are:

  • Pay Day
    You must report a “pay event” to the ATO from your payroll software at the same time as you pay your employees various types of payments, including salary or wages.
  • Business Activity Statements (BAS)
    Salary or wage information (W1) and PAYG withholding amounts (W2) reported through STP will be pre-filled to your BAS. You (or your tax practitioner) will retain the ability to adjust or correct information on your BAS. Pre-filling of the BAS will not begin until 1 July 2019. For the 2018/19 financial year, you should continue to both calculate and enter the W1 and W2 fields in your BAS in the same way as before the introduction of STP.
  • End of Year
    Once you commence reporting through STP, you’ll no longer need to provide employees with an end-of-year payment summary or send the ATO a PAYG withholding annual report. Instead you will send a “final event indicator” to the ATO with the final pay or at year end.
  • Employees
    Using their myGov account, employees will be able to interact securely with the ATO to view their year-to-date salary or wage amounts, PAYG withholding and employer superannuation contributions. End-of-year payment summaries will also be available in myGov.