Early February 2019, the Single Touch Payroll (STP) legislation for employers with 19 employees or under was passed. This legislation makes it mandatory for all business’ employing someone to report every payday to the ATO.
What happens if I don’t report every payroll?
The ATO has made it clear, there will be fines for anyone who doesn’t report STP every pay. STP needs to be completed on or before the pay is paid, starting 1st July, however you may start before the 1st of july.
What is the benefit of Single Touch Payroll
Single Touch Payroll :
- Streamlines reporting
- Minimises errors
- Eliminates payment summaries
- Improves access to new employee information
What is reported?
The year to date figures for Gross wages and PAGYW are reported, Also a breakdown of year to date figures on some allowances are reported. The reported amounts appear in the employees MyGov account, replacing the need for Payment Summaries at the need of the year.
Getting Ready for Single Touch Payroll
There are a few pre-STP reporting processes that you will need to go through to correctly set up STP Reporting. Once set up is done, the process is very easy and will become part of your normal payroll process.
Review your business processes
Check that your payroll staff know about STP. You should ensure that you are:
- paying your employees correctly
- calculating your employees’ super entitlements correctly
- addressing overpayments correctly
- maintaining accurate information including names, addresses, and date of birth records.
Register your Payroll Software with the ATO
Every Software solution has a unique SSID number, to find this number depends on your software. If you are using QBO you can look at this link , If you are using Xero look at this link, If you are using a manual process, eg, excel, please contact me and we will find an alternative.
The process of letting the ATO know this number is the same, through your ATO Access Manager.
If you need help with setting up your STP, letting the ATO know through Access Manager or reviewing your Payroll processes for compliance, Please contact me. I can set up a screen sharing session and guide you through the whole process.