Single Touch Payroll – An Update
As a follow up to our previous post on Single Touch Payroll, STP is now in effect from 1 July 2019 for all employers with 19 or fewer employees. This is a gradual transition and the Tax Office are providing flexible options.
Employers with 4 or less staff will also have additional options.
If you do not use a payroll software, the Tax Office has a list of no-cost and low-cost solutions available on their website.
STP works by sending tax and super information from your payroll or accounting software to the Tax Office as you run your payroll.
When you start reporting:
- you will run your payroll, pay your employees as normal, and give them a payslip [your pay cycle does not need to change (you can continue to pay your employees weekly, fortnightly or monthly)]
- after you follow the prompts, your STP-enabled payroll software will send a report which includes information such as salaries and wages, pay as you go (PAYG) withholding and super information [see the Tax Office’s employer reporting guidelines for a full list of payments that must be reported through STP.]
The Tax Office systems will match the STP information to their employer and employee records. Employers will no longer be required to provide Payment Summaries come end of financial year as it’s reported throughout the year. However, you will need to review and send a finalised report (as you’ll also need to add the FBT and check the annual figures for accuracy). More information about STP is available here.