From 1st July 2018, all businesses who have 20 or more employees need to be set up for Single Touch Payroll (STP) which, in a nutshell, is direct reporting to the ATO of PAYG and Super contributions every payday.
Businesses who have less than 20 employees will need to be using STP from 1st July 2019 (pending legislation).
The aim of STP, according to the government, is to streamline payroll reporting and eliminate the need for providing Payment Summaries to employees, who will be able to access their payroll information through “myGov”. It will also enable the ATO to identify any non-compliance by employers who may not be reporting accurate payroll details.
The ATO has provided a checklist as follows:
Ensure the ATO has the correct contact details for your business.
Check that all Employee details are accurate, eg contact details, date of birth, Tax File Number.
Ensure that wages and superannuation payments are being calculated correctly.
Confirm your Payroll Software Provider will be compliant for STP.
If you do not have a payroll solution that offers STP we would be happy to discuss this with you, please contact our office on 08 8339 4950.
More information is available on the ATO website at www.ato.gov.au/stp