What is Single Touch Payroll?

What is Single Touch Payroll?

What is Single Touch Payroll? | Aspect Accountants and Advisors

What is Single Touch Payroll?

As of 1st July 2018, Single Touch Payroll was introduced to businesses of 20+ staff. This year from 1st July 2019, businesses with fewer than 20 employees and businesses that had extensions granted will also have to start reporting using Single Touch Payroll. Are you ready for the switch?

What is Single Touch Payroll?

This new regulation changes how businesses report payroll activity to the ATO. Previous to the regulatory change, small businesses finalised their payroll records at the end of the financial year and produced payment summaries.

With STP, employers will supply their payroll data to the ATO on a pay-by-pay basis.

What do you need to know with the introduction of Single Touch Payroll in 2019?

If you are a business with employees, you will have to transfer your payroll data to the ATO with each transaction. Your bookkeeper or accountant will be able to advise on how this is being done and what software solution they suggest using to do this.

It should also be noted for ongoing reporting and payments, this means:

  • There will be no need to complete W1 and W2 (Wages & PAYGW) figures on ATO activity statements.
  • If your business is currently not reporting GST and you are lodging electronically (i.e. Instalment Activity Statements) you will lose your current 2-week extension period.

How to comply with new STP if you report in the following manner…

  • If you use online payroll software: Your software will most likely be able to submit these reports, however you must make sure it produces ATO-compliant reports. To ensure this is the case, contact your software service provider directly.
  • If you use desktop payroll software: You will need to find a service that can upload your payroll reports and convert them into the ATO’s required format. It must then make the submission on your behalf.
  • If you use spreadsheets or manual workings: It will be best to research a software solution to convert the data you have input into a digital report.

If you use any of the following major accounting software providers, you can read more about the change via their websites. Just click on the links below.

If you have any questions about the transition to Single Touch Payroll as of 1st July 2019, Aspect Accountants and Advisors are here to help. Feel free to give us a call at our West Perth Accounting office.

P08 9227 9400

F08 6323 1111

A27 Cleaver Street, West Perth, WA 6005