Single Touch Payroll (STP) is a new Government initiative that will require employers to 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.
Most accounting software providers are modifying their payroll systems to cater for STP. For example, MYOB has released an update recently on the processes of getting ready for STP. Other providers will make the announcement soon.
In order to prepare your organisation for STP, you should make sure that the following information is up-to-date and accurate:
- 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
Please click here to watch a short video overview produced by the ATO on the introduction of STP.
At Banks Groups 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.