• News
  • 17 June 2019

Single Touch Payroll (STP) is an Australian Tax Office (ATO) reporting requirement whereby employers report employees’ remuneration to the ATO at the time of payment.  Employers using STP are no longer required to prepare payment summaries for employees nor submit a payment summary annual report to the ATO. Employees will be able to access their earnings, amounts withheld and superannuation information through their myGov accounts. 

STP has been mandatory for employers with twenty-plus employees since 1 July 2018.  Those with fewer than twenty employees must report using this regime from 1 July 2019.

The ATO has indicated they will provide a 12-month deferral from STP for closely held payees – those employees directly related to the entity from which they receive payments including directors and shareholders, and their relatives, of a company or beneficiaries of a trading trust. STP reporting will then commence from 1 July 2020 for these employees.

Nexia has held regular consultations with both the ATO and STP software providers.  We have determined the following recommended STP-compliant products, provided to encourage discussion with your trusted Nexia advisor as to the most appropriate software to manage not just payroll but your business’s accounting function as a whole/comprehensively.


                

How can Nexia assist?

  • Address any queries you may have in relation to STP,
  • Selection of the most appropriate STP-enabled product,
  • Migration of current payroll systems to one providing STP; and
  • Determining whether you qualify as a closely held payer

Preparing for STP

  • Communicate with your employees to ensure their personal information in your payroll system matches those held with the ATO. This includes names, address, dates of birth and Tax File Numbers.  Your employees can review and update their personal information with the ATO via their myGov account. 
  • Confirm your existing payroll software will be STP-compliant from 1 July 2019.  If not, you will need to migrate to a product that is.
  • Review the settings of your current payroll system to ensure they are maintained with the correct taxation and superannuation categories for STP reporting.

For additional information please contact a Nexia Advisor.
 

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