Don't be afraid of the Single Touch
ATO reassures businesses with cold feet to take the plunge on real-time reporting.
The Australian Tax Office is encouraging small employers (with 19 or less employees) to follow the lead of nearly 45,000 Australian employers who have been successfully reporting through Single Touch Payroll (STP) since 1 July 2018.
These employers are now reporting their employees’ salaries and wages, pay as you go withholding and super information to the ATO from their payroll solution each time they pay their employees.
ATO assistant commissioner John Shepherd said while it’s not mandatory for small employers to report through STP they can choose to get on board when their software is ready.
“If you use online or cloud-based payroll software you may be able to start reporting now by updating your software to one that is STP-ready. You should talk to your software provider about when your product will be available,” he said.
A number of different STP reporting options are available for small employers including simple, low cost solutions.
“The ATO works closely with small businesses and we are aware of the many competing pressures they face. We will work with all stakeholders on alternative options for those businesses who do not use payroll software,” he said.
As a result of businesses transitioning to STP reporting, the ATO now has access to employee superannuation data allowing it to better protect employee entitlements. Employees can also see their year-to-date tax and superannuation information online in real-time via MyGov.
“STP is a win, win for employers and employees because it streamlines the process for employers and provides greater transparency around super entitlements for employees,” said Shepherd.
“Tens of thousands of employers across Australia have already taken the next step in payroll reporting and adopted STP and we’re encouraging small employers to follow this lead when their product is available.”
Visit the website for more information, resources, news and detailed guidelines.
Worried about taking the next step? Hear from these small employers discussing Single Touch Payroll reporting. Maybe.