Single Touch Payroll (STP) is new legislation that changes the way employers report their employees’ tax and super information to the Australian Taxation Office (ATO). This new legislation has now been passed for all employers, including employers with less than 20 employees from 1 July 2019.
As employers will now be required to send their employees’ tax and super information to the ATO each time they run their payroll and pay their employees, they will need to use a payroll or accounting software system that is STP compliant.
It is important that these new systems be in place by 1 July 2019 for any business that would normally issue a payment summary for an employee. Closely held employers (i.e. employers that only employ directors, shareholders and their own family members) have until 1 July 2020 to comply.
Additionally, employees will no longer receive a payment summary at the end of the year. An Employer will be required to make a Finalisation Declaration through their payroll system by 14 July. Once this has been done employees will be able to view tax and super information through their myGov account.
We can help you make sure your business is ready for these changes. Please phone or email us for more details.
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