Single Touch Payroll will be starting on 1 July 2018, with businesses of 20 or greater employees requiring to have the system implemented by that date.
The STP system aligns an employer’s payroll reporting obligations with their payroll processes. It effectively provides the ATO with all the information you provide to your employees on their payslip.
Payroll software programs were required to come into line with the new regulations, and Xero is already geared up to provide this service.
Who does STP apply to?
Employers of 20 or more people need to comply from 1 July 2018. Employers with 19 or fewer employees have until 1 July 2019 to comply.
Employee counts don’t work on FTE’s, rather include any employee, even casual who has worked during March 2018. They don’t include contractors, or directors / officeholders (unless also employees).
What needs to be reported?
The following information must be reported to the ATO on or before the day you withhold the payment to employees:
- Payment information including wages or salaries, allowances, deductions etc.
- Withholding amounts
- Superannuation liability information or ordinary times earnings (OTE)
If you need help ensuring you’re ready for STP, please talk to our team ahead of the July 1 implementation date. For more information visit the ATO’s STP information here, Contact us if you have any queries or you need help.