Single Touch Payroll (STP) is a way of streamlining tax and super information to the ATO from your payroll or accounting software. Designed to provide ‘real-time reporting solutions, the implementation of STP will mean employers will now report figures at the time of payroll, and employees can access year-to-date tax and superannuation details as they require them.
So what does this mean for employers and employees alike?
All businesses will be required to comply with Single Touch Payroll from 1st July 2019. In the coming months, we will see new software solutions and options enter the market. Early adoption is possible, and some businesses may have seen this already as providers have begun rolling out new software options for those businesses wanting to uptake this method of data processing. Businesses utilising STP will be able to report employees’ salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding, and superannuation information, while eliminating the need to provide end of year payment summaries.
The main change for employees is the introduction of real-time reporting meaning we will slowly see the reduced need for EOFY PAYG Withholding Payment Summary. This information will now be available via your myGov account, allowing access to year-to-date taxation summaries and super information, continuously being updated in real-time as your employer pays you. You will also be able to continually check your super contributions and receive your tax-ready payment summary information (income statement) via myGov.
For more information, visit the ATO website.