Single Touch Payroll for everyone
Posted by Northadvisory on April 29, 2019
Single Touch Payroll (STP) has changed where every employer will be required to use the system from 1 July 2019. If you are still using a manual system to pay your staff, you will need to change soon.
If you haven’t started using STP yet, you will need to do the following before 1 July 2019:
- update your payroll system so that it can complete STP requirements, or
- engage with us to complete these payroll reporting requirement for you.
What is STP
Employers will need to report the following through their payroll system:
- payments made to individuals and amounts withheld from those payments
- payments of salary or wages and ordinary time earnings (OTE), and
- employee superannuation contributions.
Also, other amounts such as “sacrificed ordinary time earnings amounts” and “sacrificed salary and wages amounts” will be reportable. The objective of these additional reporting requirements ensures that superannuation guarantee is not reduced by amounts salary sacrificed. These amounts, along with ordinary time earnings and superannuation contributions can be reported either separately or combined. Either way, the ATO has stated that they will be aware of an employee’s overall package from which they work out their superannuation guarantee.
Payments not made through the payroll system (eg contractor payments, payments of superannuation income, payments of dividends, interest and royalties, etc) are excluded.
PAYG payment summaries
There will no longer be a requirement to provide employees with PAYG payment summaries at year end.
Essentially, the employees will be able to see their payment summaries at year end online from myGov and also they will be available on the Tax Agent Portal.
For more information, please do not hesitate to contact us. Read more business accounting articles.
Martin van der Saag
T: 02 9984 7774
T: 02 9984 7774