Recently you might have been receiving correspondence from the ATO on Single Touch Payroll (STP).
So what is it?
STP is a reporting change for employers with 20 or more employees. From 1 July 2018 employers with 20 or more employees will report payments such as salaries and wages, PAYG and superannuation information from their payroll solution each pay run.
STP will be expanded to include employers with 19 or less employees from 1 July 2019. This is subject to legislation being passed.
Each pay run your reporting will be sent from the payroll system (Xero will be compliant) to the ATO advising the total salaries and wages, PAYGW, deductions, allowances and superannuation liability. This must be reported on or before pay day. Eventually W1 and W2 will be pre-filled into the activity statements.
In the pipeline are online tax file number declaration forms, Superannuation standard choice forms and Withholding declarations.
There are some reporting obligations that employers will not need to comply with, these include providing certain payment summaries and the corresponding payment summary annual report. Though a finalisation declaration will need to be provided.
What do you need to do?
On 1 April 2018, you need to confirm your headcount to know if you will be required to submit your pay information to the ATO using STP from 1 July 2018.
Counting your employees:
Full time employees
Part time employees
Casual employees who are on your payroll on 1 April and worked any time during March
Any employees based overseas
Any employee absent or on leave (paid or unpaid)
Seasonal employees (staff who are engages short term to meet a regular peak workload)
Do not include – any employees who ceased work prior to 1 April, casual employees who did not work in March, independent contractors, staff provided by a third party labour hire organisation, company directors, office holders or religious practitioners.
Where to find more information: – https://www.ato.gov.au/Business/Single-Touch-Payroll/
Information courtesy from the ATO website.