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.