Time for employers to get ready for Single Touch Payroll
THE Australian Tax Office (ATO) is urging employers with 20 or more employees to act now and prepare for Single Touch Payroll (STP) – the next step in streamlining payroll reporting.
From July 1, 2018, employers will need to report their employees’ tax and super information to the ATO through payroll software that is STP ready.
Assistant commissioner, John Shepherd, said STP will provide greater transparency and connect businesses to the ATO through their existing software.
“Single Touch Payroll is a gamechanger for both employers and the ATO. This will allow employers to be able to meet their reporting obligations to us using their own payroll or accounting software.
“Many employers will be able to update their existing payroll software to a version that is Single Touch Payroll ready.
“Employers with 20 or more employees who do not use payroll software will need to choose a product that offers STP by July 1, 2018.
“Employers need to start preparing now in order to be ready for this important reporting change,” Mr Shepherd said.
The next steps to get ready for STP:
Visit ato.gov.au/stp and download our ‘Get ready checklist’.
Do a headcount of your employees on April 1, 2018 to find out if you have 20 or more.
If you have software: talk to your provider to find out how and when your product will be ready.
If you don't have software: choose a product that offers STP.
You can ask your tax or BAS agent for advice on choosing a product that suits your business needs. Update your payroll software when it’s ready.
Start reporting to the ATO through STP.
“Some payroll software providers have asked us for more time to get ready – employers should ask if their provider has been given a deferral which will cover them, and also check when their product will be updated to offer Single Touch Payroll reporting.
“We’ve been working closely with payroll software providers, tax and BAS agents and payroll specialists from concept through to design and now deployment of solutions to ensure that Single Touch Payroll can be successfully implemented.
“The ATO is here to make the transition as smooth as possible for employers to ensure they meet their obligations. We have developed a number of resources including factsheets, checklists, information packs and advice on how to manage headcount. These are all available to download on the ATO website.” Mr Shepherd said.
Employers with 19 or less employees have another year to prepare, however they can choose to start reporting through STP prior to July 1, 2019 if their software is updated.