Archived March 2019 post, published ahead of Single Touch Payroll becoming mandatory for all employers from 1 July 2019. STP is now standard for every employer.
From 1 July 2019, all businesses with one or more employees – no matter the size – were required to report their employees’ tax and super information to the ATO through Single Touch Payroll (STP).
STP changed the way employers report tax and superannuation information to the ATO. From that date, employers had to electronically send employees’ tax and super details each time there was a pay event. According to the ATO, around 90,000 micro-businesses used no software at all, which led experts to compare the change to the introduction of GST.
Larger employers (20 or more employees) had already been using the system for a year, and this change brought all employers into the same reporting requirements. Reporting digitally also saved time reconciling wages and reduced other reporting requirements. Employees could easily access their payment information by logging into their myGov account.
Getting ready
Overall, STP is simple and streamlines processes, but it needs preparation. A range of options existed for businesses of all sizes, with major accounting software providers (including Xero and MYOB) rolling out solutions built for small and micro-businesses.
Already registered for automated payroll?
If you were already running automated payroll you were halfway there – the rest was a matter of confirming your setup met the STP requirements. If you’re unsure how STP applies to your business today, get in touch and we’ll walk you through it.