Institute of Certified Bookkeepers

Single Touch Payroll

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Introduction

Concept

Each and every payrun, the employer must use software to submit details of each employees pay at the time they are paid.

Each payday a STP Payroll Report needs to be provided to the ATO.  That report provides the YTD values for each employee that was paid and also the employers amounts of Gross Salary & Wages (W1) and Tax withheld (W2).

At the end of the year the employer needs to send a "Final" flag with the final data to the ATO.  No more payment summaries, no more PSAR/empdupe files.  These are replaced by the "Final" Flag.

Please note STP does not change the time when you have to pay employees, nor does it change the time you pay the PAYGW or the SGC.  STP is a report to the ATO after you have performed your payroll and paid the employees and provided payslips.  The payment of PAYGW remains on the BAS for small and medium withholders and weekly payment for Large withholders.  Super is paid quarterly or in accordance with an Industrial Award if that applies to you.  You DO NOT have to pay the PAYGW nor the SG any earlier.

It's law

All employers in STP by 30 September 2019.

The first piece of Legislation received Royal Assent in September 2016.  It required that as at 1 April, 2018 every employer does a head count.  All those with 20 or more people as at 1 April 2018, must have a plan to enter STP by 1 July, 2018.  That plan maybe using a deferral that has been granted based on the Software being used or if an employer needs their own deferral.

Small Employers are now also required to adopt STP reporting.  The proposed law passed both houses of parliament on 12th February 2019 and brings all employers into STP reporting from 1 July 2019.

NOTE - Transition period

Large employers transition period are basically over as of 1 July 2019.  The ATO will consider applications for further deferral on a case by case basis.

Smaller (<20 employees as at 1 April 2018) employers will be able to transition into STP over the first 3 months of the new financial year ie get into the system by 30 September 2019.  The ATO continue to look at ways to encourage employers in and then follow up and assist engagement into the new system.

Micro (1-4 employees) employers are subject to other concessions - refer details below which allow progressive adoption or less frequent reporting.

Closely-held (family) entities have concessions for the reporting of family members payroll with exemption from reporting until 30 June 2020 and then quarterly.

 

Your Process

ICB Index to your Single Touch Payroll implementation and knowledge Process


Current Important Information

ATO STP Toolkit and Employer Reporting Guidelines

Current Information

Employee Information and Handouts

Employer Information

Frequently Asked Question


Essential ICB Resources

ICB Guidance and Explanations

Resources to Explain STP to your Businesses

Declarations and Authorisations

Detailed Explanation

STP Solutions for Members & your Businesses


Technical Webinars

STP in Software

 Explaining STP

ATO Recorded Webinars

 


ATO Produced Resources

ATO - Agent Engagement Forum Presentations


External Resources


History

  • Updated: 14 June 2019
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