SINGLE TOUCH PAYROLL: NEW PAYROLL REPORTING REQUIREMENTS EFFECTIVE 1st JULY 2019
The ATO are changing the way employers report tax and super information to them. Therefore employers will need to start using what is referred to as “Single Touch Payroll”.
Parliament has now passed legislation to extend Single Touch Payroll (STP) reporting to include all small employers (those with fewer than 20 employees) from 1 July 2019.
STP is pay day reporting by employers to the ATO as it happens, this reporting having started on 1 July 2018 for large employers (20 or more employees).
If you have 19 or less employees:
The Single Touch Payroll system will become mandatory for employers with 19 or less employees from 1st July 2019.
You need to start using Single Touch Payroll as of 1st July 2019. You will require Single Touch Payroll-enabled software to report your:
- payments to employees such as salaries and wages
- pay as you go (PAYG) withholding
- super information
You will need to send this information to the ATO at the same time as you pay your employees.
Payroll service and software providers are updating their products and services. They’ll let you know when they become Single Touch Payroll-enabled but we recommend that you get in touch with them NOW to discuss this new requirement.
If you have 4 or less employees, you will have additional options to report with STP.
If you have 20 or more employees:
Single Touch Payroll became mandatory for employers with 20 or more employees from 1 July 2018.
The same requirements as mentioned above apply to larger employers.
If you have not already begun reporting with the STP system, you will need to contact payroll service and software providers to begin this as soon as possible.
Please click here for more information from the ATO website.
If you have any questions please do not hesitate to contact our office.