The 30 September 2019 deadline for Single Touch Payroll (STP) reporting is approaching. STP changes the way employers report their employees’ tax and super information to the Australian Taxation Office. Under the new system, employers need to report each time employees are paid.
STP works by sending tax and super information from payroll or accounting software to the ATO when a payroll is run. The STP payroll software will send a report to the ATO that provides employee, salary and wages details, PAYG withholding amount and super information. Under the system, super funds will also be reporting to the ATO, so the ATO will be able to match reported payroll superannuation contributions to actual payments to the employees superannuation fund.
STP reporting is mandatory from 30 September 2019. There are some concessional options for micro employers (employers with 1 to 4 employees) and for other limited circumstances.