What is Single Touch Payroll?

Single Touch Payroll (STP) is a change in the way employers report their payroll information to the Australian Taxation Office (ATO). Employers will report payments such as wages, pay as you go (PAYG) withholding and superannuation information directly from their payroll solution to the ATO each time employees are paid.

STP starts from 1 July 2018 for employers with 20 or more employees. It will extend to include employers with less than 20 employees from 1 July 2019 (subject to legislation being passed in parliament).

What does it mean? 

– When you start reporting through Single Touch Payroll you will send your employees’ payroll and superannuation information to the ATO from your payroll solution each payday
– Your payroll cycle will not change. You can still pay your employees weekly, fortnightly or monthly
– Your payment due date for PAYG withholding and super contributions will not change. However, you can choose to pay earlier
– You may not need to provide your employees with a payment summary at the end of financial year for certain payments you report through Single Touch Payroll. The ATO will make that information available to employees through myGov (please see ‘My Employees’ below)
– You will have the option to invite your employees to complete Tax file number declarations, Superannuation standard choice forms and Withholding declarations online. This feature will not be available immediately
– When you report to the ATO through Single Touch Payroll, your employees will be able to view their year‑to‑date tax and super information through myGov

How do I get ready?

– Appoint a ‘STP Champion’ who will guide you and your employees through implementing the STP process
– Count the employees who are on your payroll on 1 April 2018
– You will need to update your software when it’s ready and start Single Touch Payroll reporting from 1 July 2018

Software Providers

You can report for STP through your existing payroll software (such as accounting software) as long as it is updated to offer STP reporting. Payroll software providers are updating their products now. Talk to your provider to find out how and when your product will be ready.
If you do not have a payroll solution, we can help you choose one that offers Single Touch Payroll reporting.
Alternatively, we can report to the ATO through STP on your behalf.
Please contact us to discuss how we can help you.

Your Employees

STP will have a large impact on employees. As previously mentioned:

– Employees may not receive a payment summary at the end of financial year. The ATO will make that information available to employees through myGov
– Employees may complete Tax file number declarations, Superannuation standard choice forms and Withholding declarations online
– Employees will be able to view their year‑to‑date tax and super information through myGov

For this reason, we encourage you to guide your employees throughout this process, including helping them register for myGov in order to accelerate their engagement and reduce unproductive time.

We understand this new reporting obligation will have a large impact on your business. Please call us on 9580-4055 if you have any questions or if you are worried that you may not be ready by the 1 July 2018 deadline.

We will be in contact with employers who we believe exceed the 20 employees threshold to help them through this process.