Single Touch Payroll
What is Single Touch Payroll?
With the passing of the legislation supporting Single Touch Payroll (STP) in September 2016, it is a legal requirement for employers of more than 20 employees to report through STP, though the effective date depends on the size of the employer:
- Employers with 20 employees or more will be required to report through STP from 1 July 2018
- Employers with 19 employees or less may report voluntarily through STP but it is not a requirement at this stage. However, subject to legislation being passed in parliament, this may become a requirement from 1 July 2019.
Watch this one-minute video to understand how Westpac may help make the Single Touch Payroll process simple.
The main components of Single Touch Payroll
Payroll event reporting
When employers pay their staff, year-to-date information on employee salaries or wages, PAYG withholding amounts and superannuation guarantee obligations must be reported to the ATO.
Employee commencement
The ATO will provide the ability for employees to optionally complete initial forms such as the TFN Declaration and Superannuation Standard Choice Form electronically via myGov.
What it means for ...
Compliance with STP reporting requirements is a legal obligation of employers, meaning that if you are an employer with 20 employees or more then you are affected.
Payroll event reporting
Employers should speak to their payroll software provider. Payroll software providers should have the ability to produce STP event messages as an option through their platforms. These messages can then be processed and transferred to the ATO via the optional STP module within QuickSuper.
Employee commencement
The ATO will provide the ability for employees to optionally complete initial forms such as the TFN Declaration and Superannuation Standard Choice Form electronically via myGov.
Connectivity to the ATO
In the event a provider is unable to assist with connectivity to the ATO please contact Westpac to discuss your options.
Get ready for Single Touch Payroll with Westpac
Westpac is one of the leading SuperStream solution providers to employers and superannuation funds through our QuickSuper platform. QuickSuper connects to a number of ATO services, providing capability that will be extended to support STP.