Single Touch Payroll applies to ALL employers from 1 July 2019
Single Touch Payroll (STP) requires employers to report wages, taxes withheld and super information to the ATO at each pay run, rather than monthly or quarterly as previously.
Urgent Action Required:
Employers with 20+ employees (large employers)
STP became mandatory on 1 July 2018 for large employers. If you have 20 or more employees, you should already be reporting through STP, or have a deferral in place.
If you have more than 20 employees and do not have your STP activated, please contact us and we can review your current accounting mechanisms to ensure ongoing compliance.
Employers with 5-19 employees (small employers)
Small employers must start STP reporting any time from 1 July – 30 September 2019. If you use payroll software which offers STP, you can update your product and start reporting any time. Your software provider will be able to provide you with information on how to update your software to a complying version. If you won’t be ready to start reporting before 30 September 2019, you will need to apply for a deferral. The ATO’s form is available as an online pdf or via this link.
Employers with 1-4 employees (micro employers)
If you have four or less employees you must start STP reporting any time from 1 July – 30 September 2019, however you will have two options.
Option 1: Use a compliant payroll software. It is our strong recommendation that you upgrade or subscribe to STP compliant online accounting software, which will have the added benefit of streamlining your bookkeeping requirements.
If you don’t currently use a compliant payroll software, the ATO has compiled a list of software developers who have produced no-cost and low-cost STP solutions – including simple payroll software, mobile phone apps and portals.
Option 2: To engage P+Y to report your STP data to the ATO on a monthly or quarterly basis. This service will be an additional charge to you and is only available until 30 June 2021, after which date you must use compliant payroll software.
Employers with closely held payees
If you are an employer with closely held payees, there are flexible reporting options available to you. A ‘closely held payee’ is directly related to the entity from which they receive payments, for example:
- family members of a family-owned business
- directors or shareholders of a company
- trustees or beneficiaries of a trust.
You will receive a separate email from us by 8 May 2019 advising whether you are registered with the ATO as an employer with closely held payees. If you do not receive an email from us by 8 May and you believe that you are an employer with closely held payees, please contact us.
If you are ready to commence STP reporting, the ATO has prepared a start reporting checklist.
For more information, refer to Single Touch Payroll on the ATO website.
To ask any questions and discuss this matter further, please call us on (07) 3217 5700 or email [email protected]
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P+Y Accountants & Business Advisory | P: (07) 3217 5700 | E: [email protected]
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