STP is a government initiative to simplify business-reporting obligations.
Single Touch Payroll is a reporting change for all employers. Employers will need to report payments such as salaries and wages, PAYG withholding and super information electronically through to the ATO directly from their payroll solutions at the same time they pay their employees.
It means at the end of the financial year employers won’t need to complete payment summaries for their employees as the payroll information would have been reported to the ATO in real time throughout the year.
It means a raft of payments which needed to be done manually can now be done automatically.
STP is mandatory for all employers with 20 or more employees from 1 July 2018, and 1 July 2019 for businesses with fewer than 20 employees.
For those clients on MYOB Version 19 and below their software will not be compliant with this reporting system. These clients will need to update to a current MYOB software product such as MYOB Essentials or Account Right Live. MYOB currently offers a discount for those on an old desktop product.
For those on Cashflow Manager they will need to ensure they have Cashflow Manager Gold with Wages Manager to ensure they are ready to go.
XERO software will be compliant already.
Quickbooks users will need to ensure they are using Quickbooks Online.
For employers that are not on any online software you must contact our office to arrange a plan to make you compliant. It is important that you or your payroll manger are aware of the process in your software well before 1 July next year.
Please contact our office should you need assistance.