What is Single Touch Payroll (STP)
- Single Touch Payroll (or STP) is a new way of reporting tax and super information to the ATO.
- It started from 1 July 2018 for employers with 20 or more employees. From 1 July 2019 STP will also apply to businesses with 19 or less employees.
- You will still process your payroll as usual and provide a payslip.
- The software sends employees’ tax and super information to the ATO each pay.
- Mistakes can be corrected it you following STP report.
- It means no more payment summaries or payment summary annual report.
What has changed?
Under new legislation, from 1 July 2019 all employers will be required to start reporting through Single Touch Payroll.
Employers with 5-19 employees (small employers): Gradual transition from 1 July to 30 September 2019.
Employers with 1-4 employees (micro employers): For those who don’t currently use payroll software, there will be other ways to report STP information.