As mentioned in previous editions of S & W Insight and as a final reminder before it starts happening, as from 30 September there will be changes applicable to the reporting for wages and super information for employers. This is called Single Touch Payroll (STP).
What is STP
- STP is a new way of reporting your payroll information to the ATO.
- Previously it was only your ‘total’ gross wages and PAYG withheld that was reported to the ATO at W1 and W2 respectively on your BAS/IAS and 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 need to 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 and Xero registration and opt-in.
- Every time that you process a pay run, you will need to file the report through Xero with the ATO.
What information will be in the STP report:
- Gross wages
- PAYG withheld from wages
- Superannuation payable for 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:
- 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 and will 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.
If you need help opting-in to STP or if you have any questions, please contact our office.
Kreston Stanley Williamson Team
*Correct as of September 2019
*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to 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 contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.