Single Touch Payroll (STP) is a new way that businesses need to report payments such as wages or salaries, as well as PAYG withholding amounts and superannuation information each time payroll is processed.
This information will be sent to the ATO direct from your payroll or accounting software, and has been introduced to streamline payroll reporting for businesses. Payroll software providers have already begun updating their products ahead of the new reporting requirements.
STP was introduced on 1 July 2018 for businesses with 20 or more employees, to commence the new method of reporting during the 2018-19 financial year. STP is set to be expanded to include organisations with 19 or less employees from 1 July 2019 (subject to legislation being passed).
So what does this mean for small businesses?
If you had 19 or less employees as at 1 April 2018, you were exempt from the first phase of the STP rollout. However, you will likely need to get ready for STP reporting in the 2019-20 financial year. By this time, most software providers should be able to accommodate STP.
If you don’t currently use a payroll solution, you will need to choose one that offers STP reporting, as well as familiarise yourself with the minimum reporting requirements for you to meet your STP obligations.
There are a number of rules regarding STP reporting which employers will need to be aware of prior to commencing this method of reporting. If you are interested in learning more about STP and payroll functions, we offer short courses in accounting software or payroll administration, as well as a Diploma of Payroll Services qualification.