Single Touch Payroll (STP for short), is a reporting change taking place for employers. The Australian Government has introduced legislation that means employers will need to report payments including salaries and wages, pay as you go (PAYG) withholding and super information to the ATO directly from your payroll software at the same time you pay employees.
Why is this important? Because currently, depending on the size of the business, reporting needs to take place either quarterly or monthly. These changes will mean that you will need to update your payroll or accounting software to enable STP reporting to occur each time you pay your employees.
For employers with 20 or more employees, Single Touch Payroll reporting starts from 1 July 2018.
The Australian Government has announced it will expand Single Touch Payroll to include employers with 19 or less employees from 1 July 2019. This will be subject to legislation being passed in parliament.
Inevitably, all businesses that have employees will be subject to these new reporting frameworks. The best thing you can do is be prepared, get in touch with your accountant or bookkeeper to see if there is anything you need to do to get ready for these changes as they take place.