Single Touch Payroll (STP) requires businesses to report payments, such as, salaries and wages, pay as you go (PAYG) withholding taxes and superannuation information to the ATO, as and when they pay their employees.
STP is only a reporting mechanism, it will not aﬀect the way payroll process and delivery to employees – but under the new system, employers will have to authorise STP reports to ATO.
This can be done through existing payroll software ( Such as Xero, QBO, MYOB). Payroll Software providers have updated their products to match this requirement of ATO.
What Hasn’t Changed
Payroll cycle will not change. Employers can still pay employees weekly, fortnightly or monthly.
Payment due date for PAYG withholding and super contributions will not change. However, businesses can choose to pay earlier.
Businesses are still required to submit Business Activity Statements (BAS).
Payroll staff must know about STP and ensure that:
- Employees are paid correctly
- Employees’ super entitlements are calculated correctly
- Overpayments are addressed correctly
Accurate records including names, addresses, date of birth, etc. are maintained.
If you need assistance with payroll, single touch payroll or anything else relating to bookkeeping and numbers, contact us today. We can help you to become STP-ready before 1 July 2019!