Single Touch Payroll (STP), is an Australian Government initiative to reduce employers’ reporting burdens to government agencies.
With STP, you report employees’ payroll information to us each time you pay them through STP-enabled software. Payroll information includes:
- salaries and wages
- pay as you go (PAYG) withholding
STP started on 1 July 2018 for employers with 20 or more employees and 1 July 2019 for employers with 19 or fewer employees and is a mandatory obligation.
The ATO have provided several concessions depending on business, industry, or employer types. Most of these ended on 1 July 2021. If you have a current concession you will need to be reporting each pay day through STP by this date.
If you haven’t started reporting through STP, you need to start reporting as soon as possible as penalties may apply.
Expanding data collected from STP
In the 2019–20 Budget it was announced that the ATO would expand the data collected through STP.
This expansion of STP (also known as STP Phase 2) reduces the reporting burden for employers who need to report information about their employees to multiple government agencies. It also helps Services Australia’s customers – who may be your employees – get the right payment at the right time.
The mandatory start date for STP Phase 2 reporting will be 1 January 2022.
The ATO is working closely with digital service providers who will update your STP-enabled solutions for you. When your STP-enabled solution is ready, your provider will let you know what you need to do.
Contact Advantage Business Group to discuss your reporting responsibilities and what digital service provider is right for your business.