Single Touch Payroll (STP) will change the way many Australian businesses report salary and wage payments to the ATO. Find out what you need to know before 1 July next year.
- Single Touch Payroll is a government initiative that has been instigated to simplify business-reporting obligations.
- The Single Touch Payroll reporting change is for employers with 20 or more employees.
- The main change is that these employers will need to report payments such as salaries and wages, PAYG withholding and super information electronically through to the ATO directly from their payroll solutions at the same time they pay their employees.
This means that a collection of payments which needed to be done manually can now be done automatically. At the end of the financial year these group of employers will no longer be required to complete payment summaries for their employees as the payroll information would have been reported to the ATO in real time throughout the year. The official start date for STP is 1 July 2018.
Single Touch Payroll will become mandatory for all employers with 20 or more employees, but for employers with fewer than 20 employees will also have the option to adopt Single Touch Payroll if they want to.
To find out more about Single Touch Payroll please contact your Accountant at Rubiix Business Accountants on (03) 9603 0066.