Are you Ready for Single Touch Payroll?
This article is published by Modoras Accounting (SYD) Pty Ltd
View our 6-point guide to transition your business to Single Touch Payroll (STP) as it starts 1 July. See if your payroll solution is up-to-date.
If you have more than 20 employees you must be prepared for Single Touch Payroll (STP). The Australian Taxation Office (ATO) will streamline business reporting obligations, STP is mandatory from July 2018.
How does it work?
- When you pay your employees, the payroll information will be automatically sent to the ATO from your payroll solution.
- Also under STP there will be no need to supply pay as you go (PAYG) end of year summaries to employees
- There will be no need to provide annual reports and tax file number declarations to the ATO.
Important points to keep in mind for the transition to Single Touch Payroll (STP) include:
- From 1 July 2018, employers with 20 or more employees will need to start reporting through STP.
- To determine if they are required to report through Single Touch Payroll, you will need to do a headcount of your employees on April 1, 2018.
- When you pay your employees, you are required to report salary or wages, PAYG withholding and super guarantee information to the ATO.
- As an employer, you have the option to invite your employees to complete tax file number (TFN) declaration and super standard choice forms online.
- Your payroll software may need to be updated to a version that supports STP. Check with your software supplier ASAP.
- If your payroll software is already STP enabled, you can begin to report through Single Touch Payroll now.
How Single Touch Payroll will work
Employee End-of-Year Pay Information. It’s simpler!
When you report employee payment details through the STP, you will not be required to provide that employee with a payment summary at the end of financial year and the employee won’t be required to provide the ATO with a payment summary for the financial year.
You will need to notify the ATO when the payment summary data has been finalised ready for tax time.
The ATO will make payment information available to employees and their tax professionals through myGov, and as pre-filled information in their tax return.
Over to you
If you would like to know more about Single Touch Payments (STP), get in touch with us on 1300 888 803.
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This article is published by Modoras Accounting (SYD) Pty Ltd ABN 18 622 475 521 This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.