Single Touch Payroll (STP) is a new way for employers to report employees' tax and superannuation information to the ATO.
You need to report all your employees' payroll information, such as salaries and wages, pay as you go (PAYG) withholding and superannuation amounts to the ATO each time you pay the employees. This information will be available to government agencies such as Centrelink and to the employees on MyGov.
- Large employers with 20 or more employees – should have been reporting through STP from 1 July 2018.
- Small employers with 19 or fewer employees – should have been reporting through STP before 30 September 2019.
- Closely held employers – need to report through STP from 1 July 2020. Refer below to check if this is relevant to you.
A closely held employer is one whose employees are directly related to the entity which they receive payments from, for example:
- family members of a family business;
- directors or shareholders of a company;
- beneficiaries of a trust.
Micro employers (1–4 employees) who need more time to move to STP reporting can ask their registered tax or BAS agent to report on their behalf every quarter. This can continue until 30 June 2021. Your registered agent must apply for the concession on your behalf by 28 February 2020 and lodge the STP report on your behalf using an STP enabled solution.
You can lodge yourself (without a registered agent) if you are:
- in the agriculture, forestry or fishing industry;
- a not-for-profit club or association.
There are several low cost or no-cost STP-enabled software options available to micro employers.
If you are a seasonal and intermittent employer, you may be eligible to lodge your STP report quarterly.
Seasonal and intermittent employers are those who generally have either no employees or between 1–4 employees for most of the year and then have an increase of employees for less than three months of a financial year. Those months do not need to be consecutive.
There are four ways in which you can report your payroll information:
- Report through existing payroll or accounting solution;
- Choose STP-enabled payroll software such as MYOB, QuickBooks or Xero;
- Choose a no-cost or low-cost solution (for employers with 1–4 employees);
- Ask a third party to report for you i.e. your registered agent.
Once you finalise your STP data at the end of the financial year, your employee's income statement will be marked as "tax ready". You don't have to give your employees payment summaries for amounts you report and finalise through STP. You no longer need to prepare or lodge a payment summary annual report.
If you are yet to report your employee's information through STP or have any questions, please contact your Brentnalls SA as soon as possible.
Micro Employers - https://www.ato.gov.au/business/single-touch-payroll/concessional-reporting/micro-employers/
Low cost or no cost option - https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Low-cost-Single-Touch-Payroll-solutions/
Finalising PAYG Summaries - https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-employer-reporting-guidelines/?page=7#Finalising_your_Single_Touch_Payroll_data
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The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.