What is it and how does it affect me?
The Australian Government has committed to enforcing Single Touch Payroll (STP) reporting, employers with 20 or more employees being required to be reporting from 1 July 2018 and all businesses (regardless of number of employees) required to be compliant by 1 July 2019.
As at 1 April 2018 employers are required to have a headcount, and if at that date they are paying wages to 20 or more employees then they will need to ensure that their payroll software supports Single Touch Payroll reporting which will commence on 1 July 2018.
So what does this mean?
Single Touch Payroll reporting means that when an employer processes their payroll for a period it will automatically send tax and super information for each employee to the ATO via their accounting software. Employers will still need to complete and lodge their activity statement as normal, however pay as you go (PAYG) tax information will be pre-filled from the information sent through Single Touch Payroll. STP will not affect due dates for payment of PAYG, it simply means your payroll figures will report automatically each month and will be pre-filled onto your electronic BAS/IAS.
Once an employer commences using payroll software which supports Single Touch Payroll they will not need to lodge a yearly payment summary (Group Certificate) for employees. This information will be pre-filled into against the employee’s TFN by the ATO in preparation for their tax return lodgement.
If your payroll solution does not become compliant by the deadline, an ATO deferral is possible if the solution is in the process of becoming compliant.
To find out more on how to ensure you are ready for Single Touch Payroll reporting from 1 July 2018 or 1 July 2019, please contact Top Class Accounts on 1300 233 100.