STP IS HERE ARE YOU READY OR NOT?
What is STP?
Single Touch Payroll (STP) changes how employers report their superannuation and PAYG contribution to the ATO. STP compliant payroll software, requires employers to report PAYG and super after a ‘payroll event’ – or after each pay to employees has been processed. That may be weekly, fortnightly or monthly. This means, every time you do a pay run, you are required to electronically send the ATO your STP data. Most accounting software, including MYOB, XERO, Quicken and Reckon and Cashbooks have updated their software to ensure compliance.
Does STP benefit employers?
STP streamlines reporting to the ATO. The ATO will pre-fill the BAS (W1 and W2) for employers, eliminating potential errors and double handling. This commences from 2020 for small to medium PAYG with holders.
The ATO automatically tracks data from Single Touch Payroll submissions and makes it available online. Employers do not have to generate and distribute payment summaries to employees as they can access it via myGov. The ATO may allow employers to collect tax file declaration and super choice information from myGov when hiring new employees.
STP starts on July 1st 2019
STP reporting is mandatory from July 1 2019 for all employers. Act now to ensure your STP compliant software allows you to start reporting from July 1 2019.
If you have less than 19 employees, you won’t be forced to buy new software. However, with low-cost STP solutions at or below $10 per month for micro employers – including simple payroll software, mobile phone apps and portals, now may be a good time to begin.
Micro employers (1–4 employees) will also have a number of alternative options that are not available to employers with 20 or more employees – such as initially allowing your registered tax or BAS agent to report quarterly, rather than each time you run your payroll.
If You Don’t Use Accounting Software (manual cashbooks or excel)
You’re required to be using compliant software prior to July 1 2019.
Please get in touch with the EPAS office to get the right STP compliant software to suit your business, as there is no such thing as a ‘one-size fits-all’. Email us >
What Should I Do Right Now?
EPAS Specialists are here to help clients’ transition to STP. We will support you in selecting the most suitable STP option for your business.
While you are waiting for our reply, please go over the FAQs below, as your first question may already have been asked / answered.