Your Answers To Single Touch Payroll
What is Single Touch Payroll?
The ATO requires employers to report salaries and wages, PAYG withholding and superannuation to the ATO each time they pay their employees. This is compulsory for all employers.
What is the new legislation?
Previously it was compulsory for businesses with 20 or more employees to digitally report payroll to the ATO. It is now mandatory for all employers in Australia to be compliant to this legislation.
What does this mean for employers?
Employers are no longer required to report payments at EOFY, employers are now required to digitally send this information to the ATO every pay run.
Can I opt into STP before it is mandatory for me?
Yes you can but once you opt in you cannot opt out.
What information is reported?
Payment, tax and super information will be reported to the ATO each time you pay your staff. Employment termination payments and reportable employer super contributions are reported when you process and file your payment runs. And fringe benefits tax is reported when you finalise STP.
Do I need to provide payment summaries?
You will no longer need to produce payment summaries or a payment summary annual report. At the end of the financial year a confirmation will be sent to ATO. Employees can access payment summaries through MyGov
What happens if I make a mistake after I report?
You can make an amendment to a payment run if you make a mistake. This can be done in a few ways, revert payment run, complete and unscheduled payment run.
What happens if I opt half way through the financial year?
Majority of accounting software’s report financial year to date, so you can only start file information from when you opt into STP.
Need more time to be compliant?
September 30th is not far away, ask for more time to be compliant. Follow this link for more information about deferrals.
Affordable and compliant STP Solution?
Find a solution that is cheap and that can grow with your business. Xero have $10/month with Xero’s payroll only plan that is full payroll and you can turn this into xero accounting one day.
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