STP will be mandatory from 1 July 2019 for employers with 19 or less employees

STP will be mandatory from 1 July 2019 for employers with 19 or less employees as well. Employers with 20 or more employees should have started reporting to ATO through STP from 1 July 2018 if your software is ready.

What is STP?

Single Touch Payroll (STP) aligns your reporting obligations to your payroll processes.

You will report to ATO each time you pay your employees. Your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly.

The information you send to ATO will include your employees’ salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding and superannuation information.

Each time you pay your employees, you will report the tax and super information to ATO from your Single Touch Payroll (STP)-enabled payroll solution.

You will NOT need to provide payment summaries to your employees for the payments you report through STP:

Employees will be able to view their payment information in ATO online services, which they will access through their myGov account. Your employees can also request a copy of this information from the ATO.

To be exempt from giving payment summaries, you will need to make a finalisation declaration.