Parliament has recently passed legislation to extend STP reporting to all employers from 1st July 2019.
Single Touch Payroll (STP) changes the way employers report their employees' tax and super information to the ATO.
STP reporting started gradually on 1st July 2018 for substantial employers (those with 20 or more employees). From 1st July 2019 all employers will be caught.
Using payroll or accounting software that offers STP, employers will send their employees' tax and super information to the ATO each time they run their payroll and pay their employees. This information is sent to the ATO directly from their software or through a third party, such as a sending service provider.
Please note that the ATO will provide an exemption for closely held payees for the 2019-20 financial year, with STP reporting for these payees to commence from 1 July 2020. The ATO’s definition of a closely held employee is one who is a non-arm’s length employee, directly related to the entity from which they receive payments, including family members of a family business, directors of a company and shareholders or beneficiaries.
If you require any assistance in setting up Single Touch Payroll for your business please contact Toni Brunsgard of our office on 9387 5637.