Single Touch Payroll (STP) reporting legislation has been introduced into Parliament (31 August 2016).
What is Single Touch Payroll?
It is a move to cut red tape for employers by simplifying tax and superannuation reporting obligations and to provide savings to businesses. Single Touch Payroll is a government initiative that enables businesses and employers to report (real time) staff salary and wages (including ordinary time earnings) and PAYG withholding amounts to the ATO at the same time the employees are paid.
What about Single Touch Payroll and Superannuation?
There will also be some changes to how superannuation is reported to the ATO. There will be no changes to the way employers pay their superannuation. However, when those payments are made to the employees’ funds, the information will be automatically reported to the ATO.
What benefits does Single Touch Payroll offer employees?
In addition, employees will also have access to pre-filled forms including Tax File Number Declaration and Super Choice when they start a new job. This will be available through their myGov account.
What is e-PayDay providing with Single Touch Payroll?
e-PayDay Pty Ltd is part of the consultative process and are involved with the STP Advisory Group, STP Design Working Group and the STP Technical Working Group. We will be helping businesses to transition to Single Touch Payroll by providing updates to e-PayDay® and providing new a range of new products.
What is the Timeline for Single Touch Payroll?
The important dates for you to know;
Employers with 20 employees or more will be able to report to the ATO through Single Touch Payroll from 1 July 2017. However, it will be a requirement to report from 1 July 2018.
Employers with 19 employees or less will be able to report to the ATO through Single Touch Payroll from 1 July 2017. However, it is not a requirement at this stage.