Important Note
There’s been an amendment to legislation since we first published this article. The Australian Government has now ruled that ALL employees – whether large (greater than 19 employees), small or micro (1 to 19 employees) – will need to report their payroll with STP from 1 July, 2019. We’ll be contacting all of our valued clients over the next few weeks to ensure you’re on track and ready to go. If you’re unsure about where you stand in the interim, please don’t hesitate to contact our office.
What is Single Touch Payroll?
Single Touch Payroll (STP) is the new way for all employers to report their tax and super information to the ATO. If your payroll software has been STP enabled, you’ll be able to report:
- payments to employees (salary and wages)
- Pay As You Go (PAYG) Withholding and
- superannuation information
Who needs to use STP?
Larger operations (with 20 or more employees) have been required to report with STP from 1 July 2018. Legislation to extend STP to include smaller businesses (with 19 or fewer employees) is currently before parliament, so it makes sense to start preparing for the pending changes soon. Micro employers (with 1 to 4 employees) will have other options, too, like letting your registered tax or BAS agent to report quarterly on your behalf. (Please see note above.)
How do I get started?
If your payroll software is ready to go (i.e. it’s been STP enabled), we can help you with the changeover right way. And if you’re a micro-business looking for an easier way, we can certainly help you, too. Simply give our friendly team a call (or contact us here), let us know which software you’re using and we’ll get you on your way.