By Gary Williams, Partner 

Single Touch Payroll (STP) for all employers came into effect from 1 July, 2019. If you’re not using STP, either because it’s not yet implemented in your business or you are experiencing difficulties with your accounting system that prevents you from submitting your reports, you need to take action as soon as possible.  

To comply, you will need a STP software solution that reports key information to the ATO and if this means updating your system, we can help.

On July 1, 2018 it became law for employers with 20 or more employees to implement STP. On July 1, 2019 employers with fewer than 20 employees also had to start STP, although a general ATO concession gives them until 30 September, 2019 to implement it. 

STP electronically transfers payroll transaction data to the ATO each pay cycle at the same time you pay your employees. This data includes salary and wages, PAYG withholding and superannuation. 

To meet these requirements, you will need a STP software solution that reports the following information to the ATO on your behalf: 

  • name and tax file number (TFN) for each employee 

  • gross pay amount 

  • tax withheld on the gross 

  • ordinary time earnings for the period, and 

  • superannuation guarantee obligations 

The ATO will use the STP information to prefill the Wages and PAYG Withheld fields in your Business Activity Statement. 

It’s important to understand that STP is a reporting change only; there is no change to payment dates for employer obligations. 

The ATO’s main goal for introducing STP is to streamline and make reporting easier for employers to meet payroll processing obligations. However, we understand that new or unfamiliar systems can cause confusion, and plenty of frustration too.   

To enable a smooth and efficient transition to STP, you need to take action now.

Whether you are short on time or short on know–how, we can help you to implement STP in your business. If you need help upgrading your existing accounting system or choosing and installing new STP compliant software and learning how to use it, just let us know. 

Please contact your accountant at Rosenfeld Kant on (02) 9375 1200 or email  gary@roskant.com.au,  raul@roskant.com.au or  elias@roskant.com.au 

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The information (including taxation) contained within this article is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Rosenfeld Kant strongly suggest that no person should act specifically on the basis of the information in this document but should obtain appropriate professional advice based on their own personal circumstances.