Date posted: 15/02/2019 5 min read

Single Touch Payroll

Single Touch Payroll is a way of sending tax and super information to the ATO from your payroll or accounting software each time you pay your employees.

In brief

  • Since 1 July 2018, employers with 20 or more employees have reported to the ATO through their payroll or accounting software
  • Legislation to extend Single Touch Payroll to include employers with 19 or less employees from 1 July 2019 was passed by parliament on 12 February 2019

Single touch payroll, hourglass

Employers with 19 or less employees

Legislation to extend Single Touch Payroll (STP) to include employers with 19 or less employees has been passed.

Recognising the limited time left to the start date of 1 July 2019, the ATO has stated small businesses will be allowed to start reporting any time between 1 July and 30 September 2019. Further, any small employer who requests additional time to start STP reporting will be granted a deferral, with exemptions for employers experiencing hardship, or who are in areas with intermittent or no internet connection. There will also be no penalties for mistakes, missed or late reports for the first year.

Micro-employers (1-4 employees) will be allowed to rely on a registered tax or BAS agent to report quarterly for the first two years, rather than each time payroll is run.

The Tax Office is set to release a detailed register of single touch payroll products for the micro-business space next month, including several no cost options. A list of suppliers looking to offer a product for the micro-business space has been published, but it does not contain details on the price or type of product on offer.

Are you using the training materials from the ATO in your practice or business?

The ATO have developed a range of materials to assist and is encouraging employers to update to real-time payroll reporting:

Attaché Software launches free Single Touch Payroll implementation checklist

Attaché Software have advised the CA ANZ Tax Team that their free Single Touch Payroll implementation checklist - developed for accountants and other advisers – is now available.

View checklist

Single Touch Payroll website

ATO's article on Streamlined reporting with Single Touch Payroll

Read more

Payroll changes arrive in the small end of town

Single Touch Payroll will affect all businesses from 1 July 2019.

Read more

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