What is Single Touch Payroll
The ATO announced last year a change to the way employers must report their wages. Previously, wages were reported to employees at the end
of the year in a payment summary or group certificate and to the ATO via the Payment Summary Annual Report. Once using Single Touch Payroll
these reports will no longer be necessary and employees will have access via their mygov accounts to see the wage and super they have been
The ATO will also be using this regular feed of information to ensure super and payg withholding obligations are being met by employers on time.
Employers with 20 or more employees should already be using single touch payroll and those with under 20 employees need to be as of 1 July
The ATO has made provision for micro employers with 1-4 employees. Wages will be required to be reported in your quarterly BAS until 2021, at which time you will also need to register for an STP software.
Getting Started with Single Touch Payroll
If you are using a current version of Xero, MYOB or Quickbooks, the software is ready for you to switch on this feature. Once switched on you will begin reporting automatically to the ATO. Switching on Single Touch Payroll in your software is relatively easy, it will require you to connect your software to the ATO though, either by phone or your AusKey.
Each piece of software has it’s own instructions for setting up STP, please click on the name of your software to find the
instructions relative to yours. If you do not have an Auskey or are not confident taking this approach, we would recommend calling the ATO
at the connection step, as this is often the most straight forward approach without an Auskey.
My Software Isn’t Listed or Doesn't Enable Single Touch Payroll
Single touch payroll is mandatory for all employers, if you are currently running a piece of software that does not feature single touch
payroll we would highly recommend taking the opportunity to review other software choices. Single touch payroll is an option in all cloud
based accounting packages. These cloud based programs offer many other features that will see improved efficiencies across your business, so
maybe this is a good time to make the move.
If you are still unsure, please make sure you touch base with your CSM who will be able to assist you to get started with Single Touch Payroll. If you require your CSM to complete the setup for you, we are more than happy to do so for a set fee of $350.
If you’d like more information on what single touch payroll means for your business and reporting to the ATO, further information can also be accessed on the ATO’s website at this link.
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