Single Touch Payroll (STP) is being introduced by the Government with the aim of reducing the administrative overhead spent on payroll and employee reporting.
Its introduction is approaching. Already, a limited release trial for a small number of digital service providers and their clients commenced in July this year.
Some key dates
The following timeline sets out what is happening in the lead-up to the mandatory commencement of STP next year:
September 2017 – The ATO will have written to all employers with 20 or more employees to inform them of their reporting obligations under STP.
1 April 2018 – Employers will need to do a headcount (simply a headcount; not Full Time Equivalents) of their employees to determine if they must report through STP. This is self-assessment and does not have to be reported to anyone. However if you qualify you will need to update your payroll process to be STP compliant. All major accounting software providers will provide updates as they become available.
1 July 2018 – STP reporting will be mandatory for all employers with more than 20 employees.
If you would like some help or advice with the introduction of STP, please contact us.