STP stands for Single Touch Payroll, which was introduced by the government in July 2019 to make it much each for businesses to manage their payroll obligations. It streamlines the process of payroll, and allows you to report on employees’ payroll information to the ATO directly, each time you pay them through STP-enabled software. This payroll information includes:
- Salaries and wages
- Pay as you go (PAYG) withholding tax
- Superannuation.
STP has made payroll a much easier process to manage for both employers and their employees.
Below we have explained how STP works and what you need to ensure you are lodging correctly.
How does STP work?
Each time an employee is paid, details of the payslip are sent to the ATO automatically. This is possible through STP enabled payroll software. Most accounting software platforms will have STP features. But if yours doesn’t have STP integrations, you will need to look for one that provides this feature.
Or, please speak with the Colleges team and we can assist you in becoming STP compliant.
How do I know if my accounting software is compatible? ATO’s product register
The ATO has provided a list of accounting software products, which have met the DSP Operational Framework security requirements. These products are authorised to use ATO digital wholesale services and send data directly to the ATO. The software listed can provide a range of functionality including payroll (STP), business accounting, practice management, superannuation and self-managed super fund.
Click here for the ATO’s product register.
https://softwaredevelopers.ato.gov.au/product-register
For employees
Your employees will have some questions with regards to their payroll as the way they access this information will have changed.
Will I get a payment summary from my employer?
No. All payroll information is now lodged with the ATO.
How do I access payroll slips and salary information?
Your employees can now access all the payroll information and pay slips on their myGov account or contact the ATO directly.
Employees can lodge their tax return once their myGov account status changes to “tax ready”, which is after their employer has processed the STP finalisation event.
Call Colledges for more information on setting up Single Touch Payroll
Please phone us if you have any questions about setting up STP in your business, and to discuss the obligations you now have as an employer to ensure this reporting process is in place.
Contact Colledges, experienced accountants in Kew, at 03 9851 6500 or email us at hello@colledges.com.au.
