From 1 July 2019, all Australian businesses, including workshops, will need to introduce single touch payroll (STP) when reporting payroll information to the ATO.
STP is a payment reporting arrangement where businesses are required to send wages, tax and superannuation information to the ATO every time they pay their employees.
This is different from previously where employers only had to report wages and tax withholding after preparing annual PAYG summaries.
Basics of STP Reporting
- Employers won’t need to provide annual PAYG payment summaries at the end of the year and this information will already be passed on to the ATO during each payroll process.
- Employers no longer needs to provide payment summaries to employees for STP-reported payments.
- Employees can view their year-to-date payment information on the ATO site via MyGov.
- Employers will need a declaration finalisation at the end of the financial year.
- For the first time through STP, employers need to report super liability of employees.
- Super funds will report to the ATO when an employer pays employee super amounts.
How Can My Workshop Set Up Single Touch Payroll?
If you prepared your PAYG summaries and payslips manually previously, then you will need to purchase accounting software that is compliant with single touch payroll. Most software accounting providers like Xero and MYOB are STP ready. This means that moving your payroll to these packages will make it easier for you to comply with the ATO requirements from 1 July.
Give us a call today on 1300 473 744 and get compliant with your accounting before the new financial year starts. It’s so easy with Workshop Mate!