Single Touch Payroll
We're ready. Are you?

Single Touch Payroll (STP) is one of the biggest tax reforms since the GST was introduced 18 years ago. With STP, employers’ are required to provide real time payroll data to the Australian Tax Office (ATO) at the time employees are paid. The electronic details are at an individual employee level and include gross, tax, net and super details. The ATO will have instant visibility on every single payroll transaction throughout the country.

We are in the final phase of developing an STP compliant reporting solution which will be ready for “go live” on 1 July 2018. The ATO will audit our systems and reporting shortly.

Single Touch Payroll (STP) is an initiative being introduced by the Australian Tax Office (ATO) to provide real time visibility for employees into the accuracy and timeliness of their payroll details. It will streamline employer business reporting obligations and centralise information relating to salary and wages, pay as you go (PAYG) withholding tax, and superannuation information in a single online site (MyGov).

Single Touch Payroll reporting will commence on 1 July 2018 for all employers with twenty or more employees, with plans to bring in smaller businesses at a later date.

Under this system, once employees are paid, employer payroll information will be automatically forwarded on to the ATO, replacing the previous reporting requirements of monthly or quarterly statements. Employees will need to set up a myGov account and link it to ATO online services.

Information will be able to be viewed real-time by employees at their MyGov site which will link payroll, tax and superannuation information in one place.

Employees will be required to set up a myGov account and link it to ATO online services. Additional information for employees can be found on the ATO website.

STP streamlines the process of reporting payroll information to the ATO, facilitating pre-filling of the BAS (W1 and W2) for employers, and eliminating potential errors and double handling.

Additionally, the need to generate and distribute current payment summaries will become redundant.

The STP system will support compliance through employer collection of tax file and superannuation details when onboarding new employees.

The introduction of STP gives employees control to monitor and actively manage their payroll, tax file and superannuation information as needed.

This information will also be able to be viewed real-time by employees at their MyGov online site.

The MyGov site will make available to the employee:

  • A drop-down list of all employee superannuation funds with the current employer funds as a default. Employees will be able to view and manage (consolidate or change) superannuation details and confirm employer payment of super. STP will automatically alert ATO to any non-payment of the superannuation guarantee.
  • YTD payroll details will be available for review, updated each pay day, with a consolidated view of all employee pay history with all employers.
  • A real-time overview of employee tax position can be accessed as well as the ability to manage their tax (e.g. applying for a tax withholding variation, correcting TFN declaration details, selecting one tax free threshold).

Additional information for employees can be found on the ATO website.

For employers with 20 or more employees, single touch reporting will be mandatory from July 1, 2018. For employers with 19 or less employees, it is expected that single touch reporting will be mandatory from July 1, 2019.

IMPORTANT NEXT STEPS
The ATO requires a headcount by April 2018 from all employers that will be initially participating in the STP scheme. All employers with 20 or more employees will be required to register for STP.

If your employee numbers drop below 20 employees by July 1, you may still be considered a ‘substantial employer’ and be required to use STP reporting. Further information on ATO headcount requirements and how to register will be sent to you shortly.

Should you have any questions before then, please contact Employgroup on 1800 729 765.

There will be no changes to the way we currently process payroll. You will however will be required to register for STP and approve the data being sent to the ATO after a payroll event. We aim to make this simple and easy for you.

Yes, absolutely! We have a dedicated project team working to implement a first-class solution to meet the STP requirements. We are making the necessary changes and enhancements to our systems and we are on track for go live for July 1 2018 commencement.

Payroll solutions are currently being updated to facilitate necessary reporting through Single Touch Payroll. Further communication will be sent shortly.

You’ll still need to submit a BAS, but the W1 and W2 values will be pre-filled.

You will still be able to adjust the pre-filled values on your BAS.

You can use Single Touch Payroll even if you’re not required to. If you’re an employer that has 19 employees or under and you want to use Single Touch Payroll, then you should be able to do so, however once you opt in, you cannot opt out in the future.

The ATO expects a ‘settling in’ process and they will work with us to iron out any issues in the transition period.

For more information on Single Touch Payroll, visit the ATO website.

Aussiepay will provide you with a headcount of all current employees on your Australian payroll that we manage. You will need to go to the Manager Self Service portal and download an employee list. The employees that count to the 20 employees includes:

  • full-time, part-time and casual employees who were paid during March
  • employees of the same legal entity that employs your Australian employees that are based overseas
  • any employee absent or on leave (paid or unpaid) e.g. maternity or paternity leave
  • seasonal employees (staff who are engaged short term).

The grouping provisions that apply in other tax areas i.e. payroll tax, apply in relation to STP. If you are part of a ‘group”, the total number of employees in all member companies of ‘group’ must be included.

Do not include:

  • any employees who ceased work before 1 April or casual employees who did not work in March
  • independent contractors or staff provided by a third-party labour hire organisation
  • company directors or office holders
  • religious practitioners

If you are part of a company group, the total number of employees employed by all member companies of the wholly-owned group must be included.

1 April 2018
Head Count Day. You need to count the number of employees in your business
30 June 2018
You will need to register as a substantial business Details to be provided soon
1 July 2018
STP Mandatory reporting commences for businesses with 20 or more employees
1 July 2019
STP proposed reporting to commence for non 'substantial' businesses with 19 or less employees