Single Touch Payroll

Jul 1

STP Finalisation?

24 June 2020

STP changes the way you finalise your reporting

Reporting through Single Touch Payroll (STP) requires changes to your end-of-financial-year (EOFY) processes.

You’ll no longer need to provide payment summaries to your employees or lodge a payment summary annual report for information you’ve already reported and finalised through STP.

Advise your employees you won’t be giving them a payment summary because they will now get their new income statement in their ATO online account via myGov or through their tax professional.

Encourage your employees to check their personal details with you and in ATO online before tax time. Out-of-date or incorrect details may prevent their information from appearing in their ATO online account.

You must make a finalisation declaration for each employee after your last payment for the financial year. For the 2019–20 financial year the finalisation declaration deadline is:

  • 31 July if you employ 19 or fewer employees
  • 14 July for businesses with 20 or more employees.

The sooner you finalise, the sooner the income statement will display as ‘tax ready’ in your employees’ ATO online accounts and be ready to use in their tax returns.

If you have what we call ‘closely held (related) payees’, you may have a later due date for those payees.

May 25

STP

We can assist with setting your business up on Xero so you are STP compliant. Single Touch Payroll (STP) is commencing for small businesses employing under 20 employees on 1 July 2019. Give us a call or send us an email through our contact form now to get started.

Options will depend on your number of employees:

  • Large employers with 20 or more employees should now be reporting through STP, or have applied to us for a later start date.
  • Small employers with 19 or less employees will need to report through STP any time before 30 September 2019 – this is a gradual transition, and not all employers will start reporting at the same time.  
  • If you’re an employer with four or less employees you will have additional options.

Feb 16

Single Touch Payroll

Single Touch Payroll (STP) changes the way employers report their employees’ tax and super information to us.

Using payroll or accounting software that offers STP, employers send their employees’ tax and super information to us each time they run their payroll and pay their employees.

The information is sent to us either directly from the software or through a third party, such as a sending service provider. Software providers can tell you more about how they offer STP reporting.

Employers with 20 or more employees

STP reporting started gradually on 1 July 2018 for substantial employers (those with 20 or more employees).

If you have not started reporting through STP, we have information to help you get ready. If you need more time, you can apply for a deferral.

Find out if your software is STP-ready by talking to your software provider. Your tax professional can also help.

Employers with 19 or less employees

Parliament has passed legislation to extend STP reporting to all employers from 1 July 2019. The Treasury Laws Amendment (2018 Measures No. 4) Bill 2018 is yet to receive Royal Assent.

Talk to your software provider to find out what you need to do to update your software and start reporting.

Different STP reporting options will be available by 1 July 2019 to help smaller employers. However, we won’t force employers with 19 or less employees to purchase payroll software if they don’t currently use it.

We have asked software developers to build low-cost STP solutions at or below $10 per month for micro employers – including simple payroll software, mobile phone apps and portals. A register of providers who intend to build these solutions is available at Low-cost STP solutions.

Micro employers (1–4 employees) will also have a number of alternative options that are not available to employers with 20 or more employees – such as initially allowing your registered tax or BAS agent to report quarterly, rather than each time you run your payroll.

Exemptions to STP reporting will also be available if you have no internet or an unreliable connection.

For more information see the ATO website:

https://www.ato.gov.au/business/single-touch-payroll/

Jan 7

Single Touch Payroll & STP

Single Touch Payroll is a change to the way employers report their employees’ tax
and super information to the ATO.
Using payroll or accounting software that offers STP, employers send their
employees’ tax and super information to us each time they run their payroll and pay
their employees. The information is sent to us either directly from the software, or
through a third party – such as a sending service provider.
Software providers can tell you more about how they offer STP reporting.
Employers with 20 or more employees
STP reporting started gradually on 1 July 2018 for substantial employers (those
with 20 or more employees).
If you have not started reporting through STP, we have information to help you get
ready. If you need more time, you can apply for a deferral.
Find out if your software is STP-ready by talking to your software provider. Your tax
professional can also help.
Employers with 19 or less employees
Legislation to extend Single Touch Payroll to include employers with 19 or less
employees is currently before parliament. The Bill has been passed by the Senate
with a number of proposed amendments. It has been referred to the House of
Representatives to consider the amendments put forward.
For now, you can choose to report through STP. Talk to your software provider to
find out what you need to do to update your software and start reporting.
We won’t force employers with 19 or less employees to purchase payroll software if
they don’t currently use it. Different STP reporting options will be available by 1 July
2019 to help smaller employers.
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We have asked software developers to build low-cost STP solutions at or below
$10 per month for micro employers – including simple payroll software, mobile
phone apps and portals.
We have received over 20 expressions of interest (EOI) from software developers
and will publish a register of the successful EOIs we have received by 30 November
2018.
Micro employers (1–4 employees) will also have a number of alternate options that
are not available to employers with 20 or more employees – such as initially
allowing your registered tax or BAS agent to report quarterly, rather than each time
you run your payroll.
Exemptions to STP reporting will also be available if you have no internet or an
unreliable connection.