It’s now less than a month before the first major deadline for STP reporting. Is your business ready?
Some say Single Touch Payroll (STP) is the most significant change to business since GST was introduced in 2000.
But what is it, and more importantly, how does it affect you?
STP is a new reporting requirement introduced by the ATO. It requires employers to send payroll information to the ATO with every pay run.
Previously, employers sent payroll data (such as pay, tax withheld and super for each employee) to the ATO once a year. STP sends all these details to the ATO ‘in real time’ – every time you pay your employees, which could be weekly, fortnightly, or monthly.
This process eliminates the annual PAYG payment summaries. Instead, employees can log into their MyGov account at any time to see their up-to-date pay details. These pay details will also be pre-filled on their next tax return.
STP was introduced for companies with 20 or more employees last year. Now, companies with 19 or fewer employees are required to implement it by 30 September 2019, with a few exceptions (see below).
We’ve broken down what you need to do ahead of this deadline by business segment.