What is Single Touch Payroll All About
What is STP?
Single Touch Payroll (STP) is an initiative being introduced by the ATO to provide real visibility over the accuracy and timeliness of organisations’ payroll processes. STP will enable employers to report salary or wages, PAYG, withholding and super information directly to the ATO at the same time they pay their employees.
Who does it apply to?
It applies to all employers with 20 employees or more based on a headcount as at 1 April 2018. Employers with fewer employees can still report voluntarily, although this is not a requirement. Who are your Employees? – All common law employees as at 1 April 2018.
When does STP start?
Organisations of 20 or more employees will be required to start transmitting from 1 July 2018.
During the transition
Failure to lodge penalties do not apply in the first year. There will be a period of grace to correct mistakes.
Things to do / check or consider
- Payroll information will be reported per pay cycle not once per year. Is everything up to date?
- Is your Employee master data complete with no blank fields?
- Have all employees completed and signed their TFN declarations?
- Do you need to automate any manual processes to ensure required data is available in the payroll system for STP?
- Have you checked that your monthly/quarterly PAYGW is accurate?
When will your payroll provider be enabled for STP?
Sybiz will be ready for Single Touch Payroll before the 1st of July 2018. We are expecting more precise detail around April 2018 and will update you as more information on the exact process to follow becomes available.
Will there be costs associated with implementing STP?
It’s a little unknown at this stage, but costs should be minimal. It’s probable that customers will have to sign up to a gateway processing service much like Sybiz Super to be able to send details to the ATO.
To watch a short video on STP from the ATO, click here.