What Is Single Touch Payroll And How It Effect Small Business.
STP (Single Touch Payroll) is a new way of reporting wages & salaries, PAYG and Super obligations to the Australian Taxation Office.
For small businesses in Australia, STP (single touch payroll) came into effect from 1st July 2019.
- Small employers with 19 or less employees, need to report through STP any time before 30 September 2019.
- Micro employers with 4 or less employees do have addition options available.
These include low cost or no cost products, or quarterly reporting through their BAS or Tax Agent.
- Large employers with 20 or more employees should have started reporting with STP from 1st July 2018.
Single Touch Payroll reporting is available through most payroll, business and accounting software available to small businesses.
How STP Works
- Single Touch Payroll needs to be set up in your chosen software.
- Link software with the Australian Taxation Office.
- Process your pay run as per normal.
- Click the FILE button in your software.
What does this do?
- The information is shared with the Australia Taxation Office.
- Employees “my gov” accounts are filed with current wages, tax and super information.
- Superannuation can be tracked.
- Unpaid superannuation contributions will become clearer to employee and the Australian Taxation Office.
The Australian Taxation Office estimates in 2015-16 the superannuation gap of what should be paid and what was paid in super to be around 2.79 billion. It is little wonder the ATO are improving reporting obligations of small business.
Unsure what to do and how to go about reporting with Single Touch Payroll?
Get in touch with firstname.lastname@example.org or call on 0439 821 095