Single Touch Payroll
The Australian Taxation Office (ATO) has introduced a new initiative, Single Touch Payroll (STP), to provide an accurate and timely overview over organisations’ payroll processes. STP aims to streamline the administration of payroll, tax and superannuation obligations for employers.
Starting 1 July 2018, STP is a significant reporting change for employers with 20 or more employees.
Employers will be required to report on payments such as salaries and wages, pay as you go (PAYG) withholding and superannuation information each time employees are paid.
The new reporting will lead to transparency in payroll reporting and ensure all employers are meeting their employer taxation obligations. Advantages of the new initiative include auto reporting, activity statement compliance efficiencies and validated new hire data.
STP will be expanded to include employers with 19 or less employees from 1 July 2019, subject to legislation being passed in Parliament.
Do you have 20 or more employees as of 1 April 2018? If so you will need to be ready for Single Touch Payroll and ensure your current payroll provider is set-up to meet the requirements.
For a detailed outline of what you can do to prepare for the change, click here.
If you require any assistance with respect to the new initiative, contact your Hood Sweeney Accounting & Business Advisory Relationship Manager+ or representative Matthew Bartemucci+ on 1300 200 764.
+Representative of Hood Sweeney Accounting & Business Advisory
AFSL No. 485569
ABN 30 007 696 595