Single Touch Payroll: do you need to be ready?
Single Touch Payroll (STP) is changing the way employers report to the Australian Taxation Office (ATO). STP becomes mandatory from 1 July 2018 for employers with 20 or more employees, and is optional for all other employers.
It will make it simple to set up and process pay runs in compliance with the new requirements.
To get ready, just confirm your headcount on 1 April 2018 to know whether you’re required to comply with Single Touch Payroll from 1 July 2018.
If you’re running your own payroll
Review and update your organisation details such as the ABN address if required.
Review and update all your employee details such as dates of birth, tax file numbers and residential addresses.
If you’re managing payroll for your clients
- Review and update your practice details such as your ABN, addresses, and registered agent numbers if required.
- Review and update your client’s organisation and employee details.
- Review your internal processes to make sure you have your clients’ permission to lodge their payroll information with the ATO. You may need to amend your standard engagement letter and your internal procedures manual.
You’ll need to provide it to the ATO in one of two ways. Either:
- call the ATO and notify them of the SSID, or
- login to ATO Access Manager (using AUSkey) and nominate a software service provider
Once you’re setup, the option to report a payment to the ATO will be presented for each pay run and your payroll information will be filed with the tax office.
Also, due to the filing requirements for STP, you’ll only be able to revert the latest posted pay run for each pay calendar after you’ve opted in.
Want to know more?
Check out the Single Touch Payroll video from ATO or visit ato.gov.au/SingleTouchPayroll.