All employers need to report to the ATO with each payrun from 01 July 2019. Here's everything you need to know.
For the 2018-19 income year, payment summaries (aka group certificates) and now known as income statements will be published direct to myGov.
See our where do I get my payment summary FAQ for your and your employee information.
- If you have more than 20 employees, you will have needed to report to the ATO with each payrun, since 01Jul18. We've been doing this with all our larger employers already.
- This will apply to ALL (smaller) employers from 01Jul19.
What is Single Touch Payroll (STP)?
Single Touch Payroll is a change in the way employers will report their PAYG and super information to the ATO. Employers will now be required to report PAYG and super after a “payroll event” – essentially after payroll has been processed – rather than previously reporting monthly or quarterly. In addition to PAYG, super information must now be reported, which previously wasn’t required.
What do I need to do?
- From 01Jul18 (for larger employers), we have already been doing STP reporting included into payruns.
- From 01Jul19, ALL (including smaller) employers will need to comply with STP reporting.
- Xero have launched a STP-ready Payroll only product if you're not using the larger Xero suite. If you're doing your own payroll, this will allow you to easily process your payroll, including your STP submissions.
- If you'd like Standard Ledger to handle all aspects of payroll, including setting it up, running your payruns each fortnight/month + quarterly super + PAYG and your STP lodgement this is available for a $200 setup fee + $15/employee/mth (cheaper when you have more employees)
Remember: If you’re a payroll client with Standard Ledger, we’ve got you covered.
We’ll ensure, through Xero, that we report to the ATO as we process each payrun for you.
And confirming: there will be no additional charges for this additional reporting need.
Other common questions around Single Touch Payroll
Q: Will I still need to submit a BAS?
A: Yes – you’ll still need to submit a BAS, but the W1 and W2 values will be pre-filled
Q: Do I make PAYG or super payments through Single Touch Payroll?
A: No, Single Touch Payroll is a reporting requirement only. You will still need to make PAYG and super payments separately, quarterly for most or monthly for some client
Q: Will I still need to generate payment summaries for my employees?
A: If you use STP reporting, you may not need to submit a payment summary report. The ATO will make that information available to employees through myGov.
Q: Will I still need to submit an annual payment summary report?
A: If you use Single Touch Payroll reporting, you may not need to submit a payment summary report. (we’re still waiting on the ATO on this one)