Single Touch Payroll is coming - are you ready?

Single Touch Payroll (STP) is coming into effect from 1 July 2018 for all ‘substantial employers’. Employers with 20 or more employees need to comply with the changes from 1 July 2018, while employers with 19 or less employees will have to start reporting on 1 July 2019.

The change will report specific payroll information to the ATO using Standard Business Reporting software which will be linked to the employer’s payroll system or outsourced payroll providers system.

It will change the way employers send employee's tax and superannuation information to the ATO with payments such as salaries and wages, pay as you go (PAYG) withholding and super information sent to their Accountants directly from their payroll solution at the same time they pay their employees.

STP looks to streamline the process of reporting to the ATO, removing EOFY requirements for employers to produce payment summaries and payment summary annual reports. The system will also allow the ATO to pre-fill the BAS for employers, simplify TFN declarations and super choice information.

Through the new system, employees will be able to see their YTD payments through MyGov including salary and wage income, PAYG withholding amounts and super guarantee contribution. New employees will also have the option of online TFN declarations and Super Choice forms, simplifying the on boarding process.

To assist employers in preparing for the changeover, the ATO has released a checklist outlining the practical steps that businesses need to undertake to be ready for the 1 July changeover. These steps include:

  • Contacting your software payroll provider so they can let you know when your system will be ready for STP.
  • Visiting the ATO website so you have up to date information on the changeover. 
  • Reviewing your business processes to ensure your business and payroll staff are ready for the implementation of STP.

If you have followed the above steps, but your business still won’t be ready for the implementation of STP, you may, under some circumstances, be able to apply for a deferred start date from the ATO. For more information about deferring your start date, please contact Mary Maccar, Jacqueline Defazio or your responsible Director.  

Still have questions?

To assist clients in preparing for the implementation of STP from 1 July, Moore Stephens Victoria will be holding seminars in Melbourne and Geelong on May 23 and 24, outlining the steps employers need to undertake before the changeover. Information on the seminars will be available shortly.