Single Touch Payroll (STP) is a new way for employers to report their employees’ tax and super information to the Australian Taxation Office (ATO) — each time employers run the payroll and pay their employees. This is a gradual transition from payment summaries, which will phase out.
STP is currently available through accounting, payroll, and business management software or through a third party, such as a sending service provider.
STP applies to employers who have:
- 20 or more employees — required to adopt from 1 July 2018, or have a deferral (later start date)
- 5-19 employees — required to adopt from 1 July 2019
- 1-4 employees and do not use payroll software — there are options available, such as no-cost and low-cost Single Touch Payroll solutions (less than $10/month). These solutions may include mobile apps, portals, and simple payroll software.
- closely held payees — family members, trustees or beneficiaries of a trust, or shareholders or directors of a company.
All employers are adopting the STP reporting system, though not at the same time, so all employees’ relevant information can be accessed online in one place — as can by tax agents.
When employer starts adopting the STP reporting system:
- employer runs the payroll, pays employees, and gives payslips
- cycle (weekly, fortnightly, or monthly) doesn’t need to change
- STP-enabled payroll software will send a report to ATO, including information, such as wages and salaries, pay as you go (PAYG) withholding, and super information.
- employer reports super liability information through STP
- super funds will also report to the ATO to inform when employer made the payment to employees’ default or chosen fund.
- employees will be able to see their year-to-date tax and super information, which is constantly updated, in ATO online services via myGov. Employee data is only reported at the EOFY without STP reporting.
Employers have to finalise the STP data at the EOFY to declare to the Commissioner to state they have completed their reporting for the financial year.
Employers won’t be required to give their employees a payment summary anymore for the reported and finalised information. Once finalised, employees or their registered agent will be able to lodge their income tax return using the STP information available through the ATO online.
Starting 2020, ATO will pre-fill activity statement labels W1 and W2 for small and medium withholders with the reported information through STP. If an activity statement is currently lodged by employers, they will continue to do so.
How to report
You can send STP data to the ATO by:
- Option 1 — reporting through existing payroll or accounting solution
- Option 2 — choosing STP enabled payroll software
- Option 3 — asking a third party to report on your behalf (registered tax or BAS agent).
- Option 4 — choosing an available alternate solution.
Developed guidelines can help you with your report. The STP employer reporting guidelines (PDF) contains further details on all the requirements of STP, such as:
- what needs to be reported
- reporting rules
- correcting a report (you won’t be penalised)
- finalising the report at the end of the financial year (EOFY).
If you’re running a small business and need cash for any business purpose, such as hiring a registered tax agent during tax time — but don’t have any assets to offer, an unsecured business loan could be your best option.
Unsecured business loans in Australia are great for business owners who don’t own any assets that are of significant value, don’t like the idea of offering up security, or need the money urgently.
Cigno Business Solutions understands that business is personal and do all they can to be accommodating to all applicants. With unsecured or small business loans from CBS, your credit rating isn’t part of the assessment for approval.
What you’ll need to apply are:
- some contact details and a registered ABN
- a 90-day bank statement for your business
Once your application has been approved, you will receive funds within 2 hours. Pretty easy, right?