From the first of July 2019 the ATO are introducing Single Touch Payroll (STP), a new way for employers with 19 or less employees to report tax and super info.
STP is an initiative from the ATO to encourage frequent salary reporting.
So what does this mean for you?
If you’re an employer with 19 or less employees, it means that you’ll report information including salaries and wages, pay as you go withholding (PAYG), and super information directly though your payroll software, like Xero.
The way you pay your employees won’t change, however information will be fed automatically to the ATO each time you pay them.
By reporting through STP, you won’t need to complete payment summaries at the end of the financial year as it will have already been done and available to your employees through myGov.
What you need to do
The good news is that if you already use payroll software, you shouldn’t have to do anything except checking that they offer STP reporting by getting in touch with us, or viewing their website.
- If you don’t use payroll software, a new payroll-only Xero product will soon be available for as many as four employees, with an expected price of about $10 a month
- Make sure your business is registered for an ATO AUSkey, which is a log-in for the ATO Business Portal and ATO Access Manager
- Review your payroll information is up-to-date and correct including employee information
- Check PAYG withholding and superannuation contributions are calculating correctly
Micro employers (1-4 employees) are subject to other concessions – you can find more information about this on the ATO’s website. Or by getting in touch with our team.
If you have any other questions about Single Touch Payroll, feel free to get in touch with us here. We know some employers may not be ready so it’s best to get started sooner rather than later!