From 1 July 2019, Single Touch Payroll (STP) will apply to all businesses in Australia. STP uses your payroll or accounting software to send your employees’ tax and superannuation information straight to the Australian Tax Office (ATO) after each pay run is processed.
Employers with 20 or more employees should now be operating within the STP requirements, unless they have a specific approval to commence STP at a later date.
This will mean your employees will be able to see their year-to-date tax and superannuation information via their myGov account. Plus you won’t need to provide them with payment summaries from the 2019-2020 financial year.
You will still need to provide your employees with a payslip, as this is a requirement of the Fair Work Act 2009.
Whilst making the process around reporting to the ATO simpler, it also encourages employers to ensure they pay all their employee entitlements and obligations on time.
If you don’t currently use payroll or accounting software, now is a great time to consider your options. You may choose to use a low-or no cost STP solution, or you may be interested in reviewing your options to outsource your payroll and human resources entirely (we can help you).
*This is general information only and does not take your specific business circumstances into account.