ARE YOU READY FOR SINGLE TOUCH PAYROLL?
Single Touch Payroll (STP) is being introduced by the ATO to provide real time details organisations payroll process. STP allow employers to report salary/wages, pay as you go withholding and super information directly to the Australian Taxation Office (ATO) at the same time as paying their employees.
STP will apply to all substantial employers from 1 July 2018. A ‘substantial employer’ is one that has 20 or more employees as at 1 April 2018. If this is the case, you will need to use Single Touch Payroll-enabled software to report your tax and superannuation information to the Australian Taxation Office in real time
What will I need to report?
You will need to report the following on or before your payroll pay day:
- Employee payments such as salaries and wages
- Pay As You Go (PAYG) Withholding
- Superannuation information
Am I required to report?
To determine whether you need to report through STP, you will need to do a headcount of the number of employees as at 1 April 2018. If, as at this date, you have 20 or more employees, you must report using STP from 1 July 2018.
If you have 19 employees or less on 1 April 2018, you will not be required to report under Single Touch Payroll until 1 July 2019.
How does this affect employees?
- Employees being paid using STP will be able to access year to date tax and superannuation information through their myGov account.
- Employees will be able to check if their superannuation has been paid at any given time.
- Some employers will no longer to need to provide employees with payment summaries at the end of the financial year.
What do I need to do?
If according to our records you are deemed to be a ‘substantial employer’, someone from M Squared & Associates will be in contact with you in the near future to ensure you are ready to transition to STP.