Apr 9th, 2018
What is Single Touch Payroll
Single Touch Payroll (STP) is a reporting change for employers. Employers will need to report payments, such as salary and wages, PAYG withholding tax and superannuation information directly to the Tax Office. This will be done from their payroll software when they pay their employees.
STP changes what you need to report to the Tax Office and how often. It does not change the underlying processing or taxing of payroll.
When does STP commence?
This is dependent on the number of employees a business has.
- 19 employees or less – STP reporting commences on July 1, 2019
- 20 employees or more – STP reporting commences on July 1, 2018
What you need to do
Do a head count of your employees. This must include
- Full-time employees
- Part-time employees
- Casual employees who worked in March 2018
- Employees based overseas
- Any employee who is absent or on leave (whether paid or unpaid)
- Seasonal employees
You head count need not include
- Independent contractors
- Labour hire staff
- Casual employees who did not work in March 2018
- Company directors that are employees
- Religious practitioners
STP will not impact the structure of employee payments or your pay cycle.
Introduction and penalties
The first 12 months will be treated as a transitional period and employers will be excused from administrative penalties for failing to report on time. This applies to all employers except those who have received written notice advising that a failure to report on time in future will attract penalties.
Do you have any questions?
Contact the Wentworth Advantage
HR Help Desk service for further guidance and advice.
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