What is Single Touch Payroll (STP)?
Single Touch Payroll (STP) is a Government initiative for employee Superannuation Guarantee and PAYG Withholding amounts to be automatically reported to the ATO during the payroll process.
Large employers (20 or more employees) had to use Single Touch Payroll from 1 July 2018.
Small employers (19 or fewer employees) may have to use it from 1 July 2019, depending on the passage of legislation.
The Government is planning to proceed with Single Touch Payroll, according to the Mid-year Economic and Fiscal Outlook (MYEFO) 2015/16.
Following the announcement of delays in the implementation of Single Touch Payroll the ATO is engaging in a further round of consultation.
The initiative was announced late in 2014 by the Minister for Small Business as a way to cut red tape for employers.
Single Touch Payroll is new system being developed by the ATO for PAYG Withholding and superannuation amounts to be reported at the same time as salary and wages are processed.
Chartered Accountants Australia and New Zealand (CAANZ, formerly ICAA) have told the ATO that superannuation guarantee payments from employers should be made more frequently, as part of Single Touch Payroll.
The Association of Superannuation Funds of Australia (ASFA) has criticised aspects of the proposed Single Touch Payroll system.
Single Touch Payroll is a system for businesses to electronically report their payment obligations to the ATO, including PAYG withholding and superannuation. It was announced by the Government in September 2014.
The ATO has raised a number of potential issues with Single Touch Payroll, as part of a consultation process.
Single Touch Payroll is a system which the Government says will “cut red tape for employers by simplifying tax and superannuation reporting obligations,” by reporting PAYG withholding and Superannuation Guarantee obligations at the same time as salary and wages are paid.