Single Touch Payroll (STP) – Getting clear for small businesses

After some delays in the date surrounding the implementation of single touch payroll, the legislation will come into effect on 1 July 2019 for employers with 19 or less employees. Employers with 20 or more employees have been required to report from 1 July 2018, however the first year is a transition period and penalties may not apply.

What is STP?

Single Touch Payroll is a way of sending tax and super information to the ATO from your payroll or accounting software each time you pay your employees.

How to report?

• STP reporting is currently available through payroll, accounting and business management software. Most software providers are offering STP-enabled products.
• Several low-cost options (less than $10 per month) will also become available in the 2019 financial year.
  • Ideal for micro employers with 1-4 employees.

What you need to do

• Employers need to do a headcount of the employees they have on their payroll on 1 April 2018.
  • If the employer has 20 or more, you will need to have been STP compliant since 1 July 2018.
  • If the employer has 19 or less, you will need to be STP compliant from 1 July 2019.
• You need to use STP-enabled software to send tax and super information to the ATO. Products that are already enabled include:
  • Xero
  • MYOB
• You will need to opt in to Single Touch Payroll through their Payroll Solution.
• You will process payroll as per normal, however, will need to file the pay run to the ATO with just a click of a button.

We recommend you get in touch with your Altus Adviser to confirm your business is prepared for STP. If you are considering upgrading your accounting systems, Altus can help you assess your current systems and decide the most appropriate for you.