Single Touch Payroll (STP) started on the 1st of July 2018 for large employers (20 or more employees). Small employers (less than 20 employees) are now required to report STP starting from the 1st of July 2019.
However, small employers are not required to report Closely Held Payees through STP in the 2019-20 financial year, they rather have granted two concessional options to report their closely held payees, either at a later start date, or quarterly starting from 1st July 2020.
STP is a new way of reporting tax and superannuation to the Australian Taxation Office (ATO). By using payroll software or another solution that is STP enabled, employer will send their employees’ salary and wage information, PAYG withholding and superannuation details to the ATO each time they process their pay run.
Employers who do not have a payroll software or their current software does not offer STP Reporting are advised to speak to their Accountant or their registered Tax Agent to get recommendation on which software product best suits their requirements and reporting needs.
In order to help small employers comply with STP reporting at a minimum cost, the ATO requested software developers to produce low cost STP solutions. Consequently, there is a list of providers on the ATO’s website who offer low cost STP solutions for a price at or below $10 per month.
If you require advice in choosing your STP software, and/or you need help in preparing and reporting your accounts, payroll, withholding tax and superannuation obligations, please Contact us today.