Single Touch Payroll – By Grace Teyo

/in /by

Single Touch Payroll or STP is a reporting change for employers. It is a new and simpler way to report employee’s payroll information.

STP is mandatory from 1st July 2018 for employers with 20 or more employees. It will be expanded to all other employers with 19 or less employees from 1st July 2019. In which, subject to legislation being passed in parliament.

To work out whether businesses need to be STP-ready, employers will need to conduct a headcount of employees back to 1st April 2018. However, it will be voluntary for employers with 19 or less employees to adopt a STP solution at this time.

Employee headcount includes:

  • Full time employees
  • Part time employees
  • Casual employees
  • Seasonal employees
  • Overseas based employees

Doesn’t include:

  • Employees who ceased work before 1st April 18
  • Independent contractors
  • Staff employed under a third-party labour hire agreement
  • Company directors *
  • Office holders *

Religious practitioners *

*Company directors, office holders and religious practitioners should not be included when determining the number of employees. However, when reporting started, their payment information will need to be reported.
As a result of Single Touch Payroll or STP, employers will no longer be required to complete payment summaries at the end of the financial year as it will have already been done and available to employees through MyGov / ATO Pre-filing report.

How to report?

  • Report from using existing payroll solution that is STP-ready
  • Report from new payroll solution that is STP-ready
  • Ask a third party (registered tax agent or payroll services provider) to submit on your behalf.

For more information / software installation in regards to single touch payroll, please contact our office for more information.