Single Touch Payroll – How will that affect my Business?
Starting from the 1st of July 2018 employers with 20 or more employees will have new reporting obligations regarding payroll processes through Single Touch Payroll (STP).
Employers will have to report to the ATO each time they pay their employees, without the need to change pay cycles. The information required will include employees’ wages and salaries, allowances, deductions & other payments, PAYG withholding and superannuation information. While employers can continue to use their existing payroll software they need to do a headcount on 1st of April 2018 to determine their current obligation to report through STP as shown below.
For employers with 20 or more employees:
You need to start reporting through STP from 1 July 2018 if your software is ready.
Some payroll software providers have asked the ATO for more time to update their products, therefore you are encouraged to check if your product has a deferred start date.
If your software is ready by 1 July 2018 but you are still not, you will need to apply for your own deferred start date.
For Employers with 19 or less employees:
STP will be mandatory from 1 July 2019, subject to legislation passing in parliament.
You can, however, voluntarily choose to report through STP before 1 July 2019 if your software is ready.
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