Single Touch Payroll

Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO.

This change means that organisations using a solution that offers STP reporting, such as payroll or accounting software, will send employees’ tax and super information to the ATO in real time (i.e. each time they run payroll). The information is sent to the ATO either directly from the software, or through a third party – such as a sending service provider.

Organisations with 20 or more employees began using STP reporting on 1 July 2018. From 1 July 2019, STP reporting will extend to include all small employers (less than 20 employees).

What does this mean for our clients? 

For clients that have not already moved to STP reporting, this will be a gradual transition and the ATO is providing flexible options (including transition assistance and extra time to implement changes). For more information see the ATO website.

There are also a number of options available for micro employers (with one to four employees) who do not use payroll software. These include no-cost and low-cost STP solutions. Again, see the ATO website for more information.

Purpose will support all aspects of the transition for our clients.

What if I’m not a client? Are there any tips?

Most good accounting software providers (eg Xero) have built STP into their system, and it is quite easy to switch on.

If you’re using a legacy desktop software you should research whether it is STP compatible. If it’s not, you need to find an alternative solution in a hurry now. Please contact us if you have any concerns.

2019-06-13T05:08:36+00:00 June 13th, 2019|NFP sector, Technology|