What is Single Touch Payroll?
Single Touch Payroll (STP) is a change in the way employers report their PAYG and super contribution information to the Australian Taxation Office (ATO). Employers are required to report PAYG and super contributions after a payroll run has been processed.
How does STP benefit employers?
STP streamlines the process of ATO reporting. By submitting payroll information upon completion, the ATO is able to pre-fill the BAS (W1 and W2) for employers, eliminating potential errors and double handling. Additionally, the need to generate and distribute payment summaries is eliminated as this information will be made available to your employees online via myGov.
Additionally, the ATO allows employers to collect tax file declaration and super choice information online via myGov when onboarding new employees.
How does STP impact my outsourced payroll?
In essence, nothing changes around how we process your payroll. The main thing is that after each payroll event, we’re required to send additional reporting information to the ATO.
Do I still need to submit a BAS and if so, am I able to adjust the pre-filled values?
Yes, you still need to submit a BAS. The W1 and W2 values will be pre-filled but you can adjust these yourself.
Do I still need to generate payment summaries for my employees?
No. These are now classified as income statements and include all the same information as the previous payment summaries. These are available via employees’ MyGov portal once the end of financial year process is complete.
Can I make PAYG or super payments through STP?
No, Single Touch Payroll is a reporting solution only. You will still need to make PAYG and superannuation payments separately. PAYG can be processed through an ABA file and super payments can be automated with Beam Super.
Can a bureau, payroll provider or registered BAS agent submit STP data on behalf of a client?
Yes, bureaus, payroll providers and BAS agents can lodge STP data on behalf of clients.
Where can I get more information on STP?
Check the ATO website.
Easy Payroll is a leading provider of payroll and HR solutions, processing over 2.5 million payrolls per year in Australia alone. Contact us today and let us make your payroll easy.