Single Touch Payroll (STP) – Update – Action Required
Single Touch Payroll (STP) is a new way for employers to report tax and super information to the ATO.
It starts from 1 July 2019 for employers with 19 or less employees. It started last financial year for employers with 20 or more employees.
You’ll report the following information through an STP ready solution – such as payroll software:
- payments to employees such as salaries and wages
- pay as you go (PAYG) withholding
- super information.
The way you pay your employees won’t change, however you will be sending the ATO this information each time you pay your employees.
Start reporting from the first pay run from 1 July 2019. Alternatively, you can start reporting prior to that date – if you want to.
How to get started:
- If you use cloud based software – these are STP compliant. You will need to establish the STP link with the ATO. Please contact your bookkeeper to assist, or alternatively we are offering a STP setup service – please contact us if you wish to utilise.
- If you don’t use payroll software or have 1-4 employees – you can choose a low-cost STP solution. Contact us for your options or review the options here https://www.ato.gov.au/business/single-touch-payroll/in-detail/low-cost-single-touch-payroll-solutions/?=redirected_STPsolutions.
Closely Held Payees
There is a one-year exemption from STP reporting for employees within the closely held group, with employers due to start quarterly reporting from 1 July 2020.
The ATO’s definition of a closely held employee is one who is a non-arm’s length employee, directly related to the entity from which they receive payments, including family members of a family business, directors of a company and shareholders or beneficiaries.
You can find out more by visiting: https://www.ato.gov.au/Business/Single-Touch-Payroll/
Call Holmans for assistance on (07) 5430 7600 or send us an email.
