As mentioned in previous editions of S & W Insight and as a final reminder before it starts happening, as of 30 September, changes will apply to the reporting for wages and super information for employers. This is called Single Touch Payroll (STP). Accountants in Sydney need to stay informed and prepared for the new requirements.
What is STP
- STP is a new way of reporting your payroll information to the ATO.
- Previously, only your ‘total’ gross wages and PAYG withheld were reported to the ATO at W1 and W2, respectively, on your BAS/IAS. Then each employee ‘totals’ were provided to the ATO at the end of the year when the annual payment summaries were prepared.
- Under STP, you will be reporting your total payroll information and each employee’s payroll information each time you process your payroll. In addition to gross wages and PAYG withheld, you will also be reporting superannuation payable.
How does STP work:
- You must look at your current payroll software and see whether it is STP compliant.
- Registration for STP must be done by 30 September 2019.
- We can assist clients with MYOB Accounting Right Live, Xero registration, and opt-in.
- Every time you process a pay run, you must file the report through Xero with the ATO.
What information will be in the STP report:
- Gross wages
- PAYG withheld from wages
- Superannuation is payable to each employee.
Then, when you pay your employees’ superannuation to their super funds, the super funds (excluding self-managed super funds) will report to the ATO:
- The date you made the payment
- Amount of superannuation you paid.
How will the ATO and others use your STP data?
The ATO will analyse and compare the information they receive from employers and employees’ super funds, identify anomalies, and make contact where necessary.
Specifically, the ATO will be able to see whether an employer has:
- Paid the correct amount
- Paid on time
- Not paid at all
The ATO will also be sharing information with various government departments.
Please get in touch with our office if you need help opting into STP or have any questions.
Kreston Stanley Williamson Team
*Correct as of September 2019
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.