Single Touch Payroll Update
If you’re a business with 20 or more employees, then the government’s Single Touch Payroll (STP) scheme came into effect for you on 1 July 2018.
This scheme has been designed by the government, along with a range of other reforms, to safeguard and modernise the Superannuation Guarantee (SG) system.
The aim of STP is to align payroll functions with your business tax and super reporting obligations.
Meeting your obligations
Single Touch Payroll changes the way you report your employee’ payroll information to the Australian Taxation Office (ATO).
Since 1 July 2018, businesses with 20 or more employees have had to report a range of payments including salaries and wages, Pay As You Go (PAYG) withholding and super information, to the ATO when they pay their employees.
Many businesses are able to meet their STP obligations through their existing payroll solution and/or accounting software, as long as it has been updated to offer STP reporting. Some payroll software providers were not ready for the 1 July start date and have asked the government for more time to update their products. You should check with your provider to confirm if they are STP compliant, or if they have been given a deferred start date.
Just remember that your payroll cycle doesn’t need to change, and your payment due date for PAYG and SG contributions hasn’t changed either.
Smaller businesses still have more time
If your business has 19 or fewer employees, the current timeframe for your switch to STP requirements is 1 July 2019. We’ll be in touch closer to the date to confirm timing and any additional requirements – subject to legislation being introduced and passed in parliament.
If you have any questions or concerns about your current contribution processes or obligations, simply contact the Nationwide Super team, your payroll software provider, or your tax/accounting agent, for help.