As of 1 July, Single Touch Payroll is required to be in place by all Australian employers, to ensure compliance with the ATO
So what is Single Touch Payroll?
An initiative of the ATO, Single Touch Payroll (STP) is an automatic reporting system sending information directly from your payroll software to the ATO. All Australian businesses are required to have this set up by 1 July 2019 to remain compliant.
With STP there will no longer be a requirement for employers to complete payment summaries and group certificates at the end of each financial year. As the tax and superannuation details are taken care of each time you pay your employees, all your employees need to do is access all their payroll information through myGov.
How does Single Touch Payroll work in practice?
Each time you run your payroll, all tax and superannuation details are automatically sent from your accounting software to the ATO. This means it is important that you are running your payroll through a cloud based payroll system ie MYOB, Quickbooks, Xero etc.
You will still provide your employees with a payslip after each payrun and all of the data associated with payroll including information around wages, salaries and PAYG withholding and superannuation, will be sent to the ATO in a report.
If your business is not yet set up for STP or you are unsure of what you need to do contact your bookkeeper or accountant who can make sure you are set up and compliant.