Release Date: 16-Jan-2018
Author: Chris Mar
What is Single Touch Payroll?
Single Touch Payroll (STP) is a change in reporting required by the Australian Tax Office (ATO).
Employers will be required to report payments such as salaries and wages, pay as you go (PAYG) withholding and super information to the ATO each time they pay their employees.
It will simplify reporting to the ATO as employers can do the reporting directly from their payroll software at the same time as they pay their employees.
You can find out more on the ATO website:
What are the timeframes for Single Touch Payroll?
STP will be compulsory from 1 July 2018 for employers who employ over 20 staff (staff numbers will be determined as at 1 April 2018).
The Australian Government has announced that it intends to expand STP to employers with 19 or less employees from 1 July 2019.
Why Single Touch Payroll?
STP will provide the ATO with payment, super and tax information on a more frequent and timely basis, allowing them to more quickly identify potential under or overpayment issues that in turn will enable the ATO to provide more accurate support and services to tax payers.
What are the implications of Single Touch Payroll?
From 1 July 2018, large employers will need STP-compliant payroll software, or another mechanism to report to the ATO every time they pay their employees. This may involve additional cost for employers, particularly those that do not currently use software based payroll systems.
The introduction of STP is an opportunity for employers to review and improve internal payroll processes.
There are benefits too, as at the end of the financial year employers won’t need to complete payment summaries for their employees as the payroll information would have been reported to the ATO in real time throughout the year.
Smaller employers (less than 20) have a grace period until 1 July 2019. By then they will need to have the ability to send the payroll-related information to the ATO each time they pay their employees though STP enabled payroll software or through some as yet unannounced alternative mechanism for those that do not have or can not access a software solution.
What is Datacom doing about Single Touch Payroll?
We’re updating our DataPay solution to ensure it complies with the needs of STP.
DataPay will allow the user to lodge the STP payrun reports within the timeframes specified after running the payroll. This will be scheduled, but can be manually initiated.
DataPay will produce the SBR2 reports and lodge with the ATO directly.
Will DataPay allow for the electronic lodgement of Tax File Number Declarations directly to the Australian Tax Office?
Yes, we’re incorporating this functionality into our STP solution.
Will you charge more for the Single Touch Payroll functionality?
At this point there is no plan to charge any additional fees for STP functionality as part of our ongoing development work to ensure that DataPay remains compliant with legislation.