What is Single Touch Payroll?
Updated: Apr 10, 2019
Legislation has recently passed through Parliament ensuring that Single Touch Payroll (STP) reporting will be extended to employers with less then 20 employees from 1 July 2019. STP for employers with more than 20 employees commenced on the 1 July 2018.
STP is “pay day reporting” by employers directly to the ATO as it happens. This initiative is designed to help ensure that all Australians receive their full superannuation entitlements, give greater transparency and help to ensure a level playing field for small business. STP is also an important step in streamlining business reporting and keeping pace with the digital age.
In support of this change, the ATO is adopting a tailored approach to help small business.
The Commissioner of Taxation, Chris Jordan, has announced that small business employers can start STP reporting any time between 1 July 2019 and to 30 September 2019, effectively granting a three month reprieve. The ATO has also indicated that there will be no penalties for mistakes, missed or late reports for the first year. Exemptions will be provided from STP reporting to employers experiencing hardship, or in areas with intermittent or no internet connection.
Moving forward with this initiative, Catalyst Accounting and Tax has ensured that our software provider, Xero, is completely fluent with rolling out STP reporting. Xero STP solution is simple and cost effective, and has been endorsed for use by the ATO. Both Xero and Catalyst Accounting and Tax, are dedicated to offering all the guidance and support you need to report directly to the ATO with confidence and security, so your transition can be smooth and hassle free.
If your business is already set up in Xero payroll, Catalyst Accounting and Tax will commence STP before the year end to ensure a smooth transition over the period.
If you currently do not use a payroll program, Xero are launching an affordable STP solution for micro businesses who have under 5 employees. If this is of interest to you contact us to discuss this further.