Single touch payroll

What is single touch payroll?

Single touch payroll (STP) is an Australian Taxation Office mandated reporting change for employers.

It starts from 1 July 2018 for employers with 20 or more employees and from 1 July 2019 for employers with less than 20 employees.

Businesses will need to report to the ATO payments including salary and wage information, tax withholding and super contributions, at each pay cycle.

As a result employers, who report an employee’s details through STP, will not have to provide that employee with a payment summary at the end of the year.

Meeting reporting requirements

The easiest way to meet the new reporting requirements is to use a STP ready software provider. Check if your current payroll software provider is ready.

If they are that’s great! Your payroll provider should be able to assist you to transition to single touch payroll.

Some payroll providers have been granted extensions to allow them more time to get ready. Your provider should be able to let you know the deferred date if this is the case.

If your payroll provider is not STP ready, you can either change provider, or ask a registered tax agent to report on your behalf.

If, due to circumstances outside your control, you will not be ready for in time for 1 July 2018 you can also apply for an employer deferral from the ATO.

How to determine the number of employees?

For the purposes of determining your reporting obligation, you need to count each individual employee (regardless if they are full time, part time or casual).

You are not required to count company directors, office holders, religious practitioners, or casual staff members who have not worked at all during the month of March.

For full details of how to count your employees see visit the ATO’s website.   

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.