STP extended to small employers from 1 July 2019

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Legislation to extend Single Touch Payroll (STP) to smaller employers, from 1 July 2019, has passed the Parliament.

Single Touch Payroll is a new system for employers to report payroll and superannuation information. Previously only larger employers (20 or more employees) had to use STP, from 1 July 2018. But legislation has now passed the Parliament which will require smaller employers (19 or fewer employees) to use STP, from 1 July 2019.

Assistant Treasurer Stuart Robert said the new STP reporting rules will give the ATO “up to date information about the amounts of superannuation that employers owe their employees”.

“The use of Single Touch Payroll streamlines employer reporting processes associated with hiring new employees, by providing digital services for completion of tax file number declarations and superannuation standard choice forms,” he said.

The ATO expects there will be a range of low-cost options for micro-employers (fewer than 5 employees) to meet this new compliance requirement. The ATO also says that “exemptions to STP reporting will also be available if you have no internet or an unreliable connection”.

The extension of STP to smaller employers is contained in the Treasury Laws Amendment (2018 Measures No. 4) Bill 2018, which recently passed the Parliament and awaits assent. The Bill also allows for jail sentences for employers not paying their Super Guarantee entitlements.M

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