NEWS AND INFORMATION
Is Your Business Single Touch Payroll-ready?New Single Touch Payroll (STP) legislation is a Federal Government Initiative. It’s a significant legislative change, not seen since PAYG 17 years ago. The legislation is born from the Government’s Digital by Default Declaration and it’s a pivotal leap to better online service delivery with a number of benefits for employers and employers alike. It is designed to improve the accuracy of payroll information sent to the ATO whilst simplifying the process for employers. To be compliant with the legislation, employers with 20 or more employees must switch to the STP system by July 1. If you become an employer of 20 on or after April 1 this also applies. For employers of less than 20, the switch is voluntary, but you may be required to switch by July 1 2019.
Employers will benefit from STP
Switching to STP reporting presents a number of benefits to employers. Your updated payroll solution will effectively send necessary payment, PAYG withholdings and super information directly to the ATO all at the same time, thereby streamlining the reporting process.
- The streamlined process means employers will no longer be lodging employee TFN declarations.
- Employee data that has been validated will be available to employees directly via MyGov.
- STP will provide employees with payment summaries.
- The STP report will allow employers to make adjustments for a prior period as well as for future periods providing flexibility to make corrections.
Employees will better monitor and manage their tax and super
The roll-out of STP provides more control and ability to manage tax and super. Via MyGov employees can –
- consolidate super balances
- apply for withholding variations, make corrections if they have claimed more than one tax-free threshold
- view YTD payroll details
- make their TFN declaration
- manage their tax balances.