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.

Government may shorten time for super guarantee payments

Superannuation Guarantee

The Minister for Small Business, Bruce Billson, and the Assistant Treasurer, Josh Frydenberg, have announced the Government will consult on employers making Superannuation Guarantee contributions and PAYGW payments at the same time as salary and wages.

Currently superannuation guarantee only needs to be paid within 28 days of the end of the quarter. Pay As You Go Withholding (PAYGW) only needs to be paid quarterly or monthly for many employers.

The consultation will also examine “what support businesses may require to enable such a transformation in payments to government and superannuation funds.”

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