In just under a week’s time, the Australian Taxation Office (ATO) will introduce Single Touch Payroll (STP) which will overhaul the way employers report various payroll related payments such as wages, superannuation and PAYG withholding in real time to the ATO.
In order to comply with the new provisions, employers will be required to use compliant STP-enabled software that facilitates the transmission of payroll related data to the ATO each time payroll payments are made.
For employers with 20 or more employees as at 1 April 2018, STP becomes mandatory from 1 July 2018. For employers with less than 20 employees, STP is scheduled to commence operating from 1 July 2019 (these employers can choose to start reporting voluntarily, however it is not a requirement at this stage).
Most accounting software providers are modifying their payroll systems to cater for STP. If you are currently using accounting software, be sure to talk to your provider to find out if their products are STP-enabled.
If you don’t currently have software, it would be wise to choose a product that offers STP. It is also important to note that reporting payroll manually will no longer be sufficient in remaining compliant.
In order to prepare your organisation for STP, you should make sure that the following information is accurate and up-to-date:
- Company information (eg Australian Business Number, contact address etc)
- Payroll details of employees (eg Tax File Number, date of birth, contact address etc)
- Mapping of payroll categories in your payroll system to ATO reporting categories
For further information, please click here to watch a short video overview produced by the ATO on the introduction of STP.
At Banks Group we have already championed the STP process. If your payroll is currently handled by us, you are already prepared for the transition.
However, if your payroll process is not handled by us, please ask your existing payroll provider when your payroll solution will be ready for STP.
Alternatively, please feel free to contact us for a consultation. We are happy to assist you.
Senior Business Analyst
+61 3 9810 0723
+61 3 9810 0770