Single Touch Payroll (STP) started from 1 July 2018 which helps employers to report their payroll information including salaries and wages, pay as you go (PAYG) withholding and super to the ATO.
If you haven’t started reporting through STP, you need to start reporting as soon as possible.
What You Need to Know
Several STP concessions including Micro employers and Small employers – closely held (related) payees reporting concessions will end as of 1 July 2021 and you will need to be reporting each pay day through STP by this date.
- Employers with 20 or more employees: STP is required from 1 July 2018
- Employers with 5-19 employees (small employers): STP is required from 1 July 2019
- Employers with 1-4 employees (micro employers): quarterly reporting concession will be end as of 1 July 2020, STP is required each pay day
- Small employers – closely held (related) payees: are exempt from reporting closely held payees through STP until 30 June 2021. From 1 July 2021, STP is required.
STP reporting for closely held payees
From 1 July 2021, you can report payments to closely held payees through STP in any of the following ways:
- Report actual payments on or before the date of payment – whenever you make a payment to a closely held payee, report the information on or before each pay event.
- Report actual payments quarterly– report your actual payments to closely held payees quarterly. Each quarter, when your activity statement is due, report all payments made in that quarter.
- Report a reasonable estimate quarterly– report amounts equal to or greater than a percentage of gross payments and tax withheld from the latest year, across each quarter.
Refer: https://www.ato.gov.au/business/single-touch-payroll/concessional-reporting/closely-held-payees/
How to Report
STP reporting works in one of the following ways:
Option 1: Report through existing payroll or accounting solution
You can report from your existing payroll or accounting software if STP reporting is available.
Next step: Talk to your software provider to find out how they offer STP and what you need to do to update your product.
Cost: STP reporting is included without any additional fees in most accounting or payroll software.
Option 2: Choose STP-enabled payroll software
You may need to choose payroll software if you do not currently use it or your current software provider is not offering an STP-enabled product.
Next step: Talk to us to find out which payroll software product would best suit your business needs.
Cost: Choose a no-cost or low-cost STP solution (for employers with 1–4 employees)
Refer: https://softwaredevelopers.ato.gov.au/no-cost-and-low-cost-solutions-single-touch-payroll
Option 3: Lodge your STP data through your Tax Agent
Next step: Talk to us to find out which payroll software product would best suit your business needs.
Cost: Fees for additional services may apply based on the level of assistance you require from us to set up and run payrolls. You can discuss these fees with us.
