For employers with more than 20 employees, Single Touch Payroll (STP) is starting on 1 July 2018. For all other employers, the change will happen on 1 July 2019.

STP will mean that every time an employee is paid, information will be sent from your accounting software (MYOB/Xero/QuickBooks Online etc) to the ATO. As a result of STP, businesses 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. You will report your employees’ payroll information (including salaries, wages, PAYG withholding and super information) directly to the ATO from your accounting solution. This will provide real time information to the ATO and other government agencies (Centrelink) about payments being received by employees.

What are the next steps?:

Step 1: Do a headcount of the employees you have on 1 April 2018 – if more than 20, you will need to start reporting through STP on 1 July 2018.

Step 2: Update your payroll solution when it’s ready – the major software providers are all working to be complaint by the start date.

Step 3: Start reporting through Single Touch Payroll

If the change doesn’t affect you until 1 July 2019, it’s a good idea to start looking at your payroll processes in the coming year to ensure that you’re compliant and ready to report under the new reporting rules.

For more information or if you need help implementing Single Touch Payroll contact Marko on 0402 412 592.