Single Touch Payroll (STP)
Single Touch Payroll is an initiative being introduced by the Australian Tax Office (ATO) to provide real time visibility over the accuracy and timeliness of organisations’ payroll processes. STP proposes to streamline the administration of employee payroll, tax and superannuation obligations for employers.
STP will enable employers to report salary or wages, PAYG withholding and super information directly to the ATO at the same time they pay their employees.
Employers with 20 or more employees will need to start reporting through STP from 1 July 2018. Employers with fewer employees can still report voluntarily, although this is not a requirement. To determine if you are required to report through STP, you will need to do a headcount of your employees on 1 April 2018, and each 1 April thereafter.
An employer’s payroll solution will need to be updated to a version that supports STP reporting. The ATO and your software provider will provide help and support to employers as they transition to STP reporting.
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