What is STP?
Single Touch Payroll (STP) is an Australian Taxation Office (ATO) requirement for businesses from 1 July 2019.
If this is news to you and your business then please give us a call with any queries after reading the information below.
The deadline to adopt Single Touch Payroll (STP) on 1 July 2019 is fast approaching, and mandatory for employers who have 1 or more employees. STP is an ATO initiative that requires the employer to report salaries, wages, PAYG withholding and superannuation requirements to the ATO each time they pay employees. For those employers with 1-4 employees there is the opportunity to report quarterly at the same time as your BAS lodgement.
This means as well as the usual PAYG reporting obligations, employers will send the information direct to the ATO after each pay run.
How do I Setup for STP Compliance?
Contact us immediately. If you have never used an STP compliant bookkeeping or accounting software before we can help!
Back to Business Bookkeeping can setup a Xero or MYOB payroll and STP compliant application for you in a matter of a couple of hours with all the correct information, and we have a process and documents to help you and to ensure you know exactly what information the ATO will require. Once your STP payroll functions are setup it is simply a matter of pressing one extra button everytime payroll is processed. All your compliance worries taken away with one click.
Contact us Now to Chat about STP
The Basics of How STP Works…
STP works, as described below by the ATO, by sending tax and super information from your payroll or accounting software to the ATO as you run you periodical 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)
- your STP-enabled payroll software will send us a report which includes the information we need from you, such as salaries and wages, pay as you go (PAYG) withholding and super information
* If you make mistakes in your STP report, you can correct it in your following report. [The ATO] won't penalise you for making mistakes you correct.
* At the end of the financial year, you'll need to finalise your STP data. This is a declaration to the Commissioner to state you have completed your reporting for the financial year.
* You will no longer have to give your employees a payment summary for the information you've reported and finalised through STP. Once you finalise your data, your employees or their registered agent will be able to lodge their income tax return using the STP information available in ATO online/
* You will no longer need to provide [the ATO] with a payment summary annual report (PSAR) at the end of the financial year for the payments you report through STP.
* From 2020 [the ATO] will pre-fill activity statement labels W1 and W2 for small and medium withholders with the information you report to us through STP. If you currently lodge an activity statement you will continue to do so.
For more information on STP go to the ATO here or click on the ATO logo.