Single Touch Payroll (STP) is an initiative being introduced by the Australian Tax Office (ATO) to provide real time visibility over the accuracy and timeliness of organisations’ payroll processes. This initiative proposes to streamline the administration of employee payroll, tax and superannuation obligations for employers.
From 1 July 2018 a company with 20 or more employees will need to report payments such as salaries and wages, pay as you go (PAYG) withholding and super information to the ATO when they pay their employees. Please note that as at 1 July 2019, employers with 19 or less employees will start reporting through STP – subject to legislation being introduced and passed in parliament.
If you are a Payroll client of ours, we have assessed the impacts of this change to your business and are confident we will meet this new legislative requirement from the due date. Solpoint will seamlessly manage this new ATO requirement via its existing accounting software that is being upgraded to cater to these changes.
Please note that your payroll cycle will not change. We have taken care of everything – you don’t need to worry. You can still pay your employees weekly, fortnightly or monthly – as per your current arrangements. Similarly, your payment due date for PAYG withholding and super contributions will not change.
We will provide further updates as required closer to the implementation date.
In the interim, please don’t hesitate in contacting your payroll officer if you have any questions.