by Kerri Stuart | Tax & Business Advisory Manager | Mar 13, 2019 | News
Single Touch Payroll (STP) aligns your reporting obligations to your payroll processes, this means you will report to the ATO every time you pay wages. Your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly. The data you report to the ATO will include your employees' salary or wage, allowances, deductions (for example, workplace giving) and other payments, Pay As You Go (PAYG) Withholding and superannuation information.
This will eliminate the need to report your wages on your activity statements at W1 & W2, and also eliminate the need to prepare and issue PAYG Payment Summaries to your employees from 1 July 2019.
If you currently use an electronic system to report your wages then the transition to STP should not be difficult. All payroll software providers are working to ensure their systems are compliant with the ATO. If you currently have a manual or paper system you need to be informed and ready to change to an electronic system in order to remain compliant. EnVision Partners offers a number of solutions that will suit your needs (some software packages for smaller employers are FREE).
Once an employer starts reporting to the ATO via STP, your employees will be able to see their year-to-date tax and super information online. This will be available via MyGov. Should your employees use a tax agent, their agent will also have access to this information.
It is not mandatory for employees to have a MyGov account, however, if they wish to access their information online throughout the year, they will require an account.
Please note: Year-to-date data employees see online may not always align with the data in an employer's payroll software, for example, when you report information that needs to be corrected in your next pay event.