Single Touch Payroll (STP) reminder
By D'Lene Browning
As of 1 July, Single Touch Payroll (STP) legislation kicked in for all employers.
STP uses payroll or accounting software to send salary and wages, tax and super information electronically to the ATO after each pay run is processed.
The Tax Office has acknowledged that the move to STP for some small businesses may be challenging, therefore small businesses will be allowed to start reporting any time between 1 July and 30 September 2019.
If you employ 5-19 employees, you will need to report your payroll information to the ATO on or before the payment date of each pay run using STP enabled software.
If you employ 1-4 staff members, there are low cost STP solutions available that are around $10 a month. You will also need to report the payroll information to the ATO using this software on or before the payment date of each pay run.
There are quarterly reporting concessions available for those businesses who employ 1-4 employees. WDF need to apply for this concession on your behalf. We also need to lodge the quarterly STP report using your STP enabled software. This concession is only available until 30 June 2021. There are also lodgement concessions available for seasonal employees.
If you only employ yourself and/or your immediate family (and are therefore a closely held entity) then you are exempt from STP for the 2020 financial year. From 1 July 2020 closely held entities will be able to report quarterly with the BAS and this may also be reported through a payroll solution starting at $10 a month for up to 4 employees. The finalisation date for STP will be aligned with the lodgement of the tax return.
Your WDF contact can assist you with choosing an STP enabled software program and advise of any lodgement concessions you may be entitled to. Please contact our office to discuss further on 02 6921 5444 or This email address is being protected from spambots. You need JavaScript enabled to view it..
If you are using a current version of Xero, MYOB , Quickbooks or Pheonix, the software is ready to switch on STP. Once it is turned on, you can begin automatically reporting to the ATO. Switching on STP is relatively easy, however it does require a call to the ATO to advise them of the Software ID number. Please contact us if you require assistance with this.
You will no longer have to give your employees a payment summary for the information you've reported and finalised through STP. Once you finalise your data, your employees will be able to access this information through their individual myGov accounts, in what is called an income statement. Registered tax agents will also be able to access this information.
You will also no longer need to provide the ATO with a payment summary annual report (PSAR) at the end of the financial year for the payments you report through STP.
The ATO have provided the following information to help employees understand how to use and navigate myGov:
Payment summary information for employees
Accessing your income statement online
