Get ready for single touch payroll

CHANGES are on the horizon for small to medium-sized businesses paying wages to workforces smaller than 19.

Beginning July 1 employers will be required to start reporting through Single Touch Payroll (STP).

STP requires employers to report their employees’ salaries and wages, pay-as-you-go withholding and super information to the ATO from their payroll solution each time they pay their employees.

Since STP reporting became mandatory for employers with 20 or more employees on July 1 last year, over 60,000 Australian employers, representing around 4.3 million Australian employees, have been successfully reporting through STP.

ATO Assistant Commissioner John Shepherd said the ATO would be working with employers to support them as they transition to STP.

“Single Touch Payroll is an important change that will deliver benefits for both employers and employees by streamlining payroll processes and providing greater transparency around super entitlements,” Mr Shepherd said.

“Employers with a payroll solution already in place may be able to start reporting now by updating their software to one that is STP-ready. We encourage employers to talk to their software provider about when their product will be available.”

As the ATO did for employers with 20 or more employees, the first year of reporting will be a transition year and the ATO will work with small employers to ensure they have the information and help they need to transition smoothly.

“The ATO is focused on educating and supporting tax professionals and employers to make the transition easier, Mr Shepherd said.

If you have payroll software, speak to your provider, if you don’t have software, choose a product that offers STP.

Visit .ato.gov.au/stp for further information.