What is single touch payroll?
Single touch payroll, also called STP or one touch payroll, is an initiative from the ATO to enforce frequent salary reporting.
This means you will be required to report salaries and wages every time you pay your employees. You will also need to report PAYG withholdings and superannuation.
On 1 July 2018 Single Touch Payroll (STP) was introduced for all employers with 20 or more employees.
From 1 July 2019, all Australian small business owners are required to report their payroll information.
What do business owners need to do?
If you currently use payroll or accounting software that offers Single Touch Payroll, you can start reporting any time.
To find out if your software is enabled for STP contact your software provider.
Using a software solution that is STP compliant is the easiest way to report to the ATO.
We recommend using Xero, which is STP compliant. Xero will also soon be offering standalone payroll solutions for micro-employers (up to four employees).
Once you start using STP you will not have to provide employees with a payment summary at the end of the year.
Information for employees
Instead of receiving a payment summary at the end of the year, employees will be able to access their information by logging into their myGov account.
Once your employer starts reporting using STP you will be able to access your tax and super information online throughout the year.
If you choose not to have a myGov account you can contact the ATO or your registered tax agent for a copy of your payment information.
For more information
Please contact our office if you have specific questions or concerns about how single touch payroll will affect your business.
Or to read more about single touch payroll visit the ATO’s information page.