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19 Apr
Single Touch Payroll: The Changes Coming in 2018
The Australian government is introducing Single Touch Payroll (STP), a new initiative to streamline tax and employee payments. Under STP employers will be required to report salary or wages, and PAYG withholding to the ATO prior to employees receiving payment.
What changes will STP bring?
For employers:
Direct payroll reporting
Aussiepay will report salary or wages details and PAYG Tax withholding to the ATO at the time employees are paid, thereby satisfying the employer obligations.
Employee end-of-year pay information
Where Aussiepay reports an employees’ details through Single Touch Payroll, there will be no need to provide PAYG Payment Summaries at the End of Financial Year.
Direct payroll reporting
Aussiepay will report salary or wages details and PAYG Tax withholding to the ATO at the time employees are paid, thereby satisfying the employer obligations.
Employee end-of-year pay information
Online commencement of new employees
As a part of Single Touch Payroll, employers will be required to provide on boarding details (TFN Declaration, Super Member Choice form and Fair Work Statements) to the ATO before the employee commences employment. Aussiepay is in the process of developing an on boarding application that will facilitate the meeting of this obligation.
For employees:
More information online
With Single Touch Payroll employees will be able to see more of their tax and payment details online.
For employees:
More information online
With Single Touch Payroll employees will be able to see more of their tax and payment details online.
Year-to-date and end-of-year picture
Employees will be able to see their YTD salary or wage amounts and the tax that has been withheld throughout the year. This includes the end-of-year information usually included in their Payment Summary.
Who is affected?
• For employers with 20 or more employees, STP is compulsory from 1 July 2018
• STP is optional for employers with 19 employees or less, it is not a requirement at this stage
Although the legal obligation doesn’t commence until 1st July 2018, employers can start to transition to Single Touch Payroll from September quarter 2017.
• STP is optional for employers with 19 employees or less, it is not a requirement at this stage
Although the legal obligation doesn’t commence until 1st July 2018, employers can start to transition to Single Touch Payroll from September quarter 2017.
Currently with Aussiepay?
Single Touch Payroll is a major development in the Australian regulatory landscape. We can assure our clients that we'll be at the forefront of the STP changes and have the solutions in place when they are required.Our objective is to keep innovating our service offering and that means we can provide a commitment to our clients that any new product developments, software changes or updates required by the ATO will be fully implemented and available prior to the timelines.
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