Tax & GST




Tuesday, April 16, 2019

Having passed Parliament Single Touch Payroll will now officially apply to all employers from 1 July, 2019.

But what exactly is STP?

Single TouchPayroll requires employers to report employee’s wages, tax and superannuation each time the payroll is run and employees paid to the Australian Taxation Office (ATO). This reporting is generally done directly from the employer’s payroll software.

Single Touch Payroll became mandatory for large employers with 20 or more employees from 1 July 2018 while STP becomes mandatory for small employers with 19 or less employees from 1 July 2019.

There are exemptions though.

On 13 February 2019 a number of concessions available for employers with 19 or less employees were announced, including:

* Micro employers (1 to 4 employees) will be offered help to transition to STP and a number of alternative options – such as allowing those who rely on a registered tax or BAS agent to report quarterly for the first two years, rather than each time payroll is run.

* Small employers can start reporting any time from 1 July, 2019 to 30 September,2019. Deferrals will be granted to any small employer who requests additionaltime to start STP reporting.

* Exemptions fromSTP reporting will be provided for employers experiencing hardship, or in areas with intermittent or no internet connection.

* There will be no penalties for mistakes, missed or late reports for the first year.

The benefits significance (in terms of paperwork) are that employers will no longer need to provide employees PAYG Payment Summaries while the system will do away with other manual payroll tasks such as TFN declarations and superannuation declarations for new employees.

If you are a small employer with 19 or less employees, you should contact your payroll software provider to see if they are STP compliant and ask them to assist with implementing STP.

If you do not use commercial payroll software,the ATO has indicated that you will not be required to purchase such software to report under STP. The ATO is working with software providers to develop low-cost and no-cost reporting solutions.

Posted on:

Tuesday, April 16, 2019


Tax & GST


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