Single Touch Payroll is coming. Are you ready?

Payroll processes are set to change for Australian business in coming years with the phased introduction of Single Touch Payroll (STP). Driven by the Australian Taxation Office, STP aims to deliver real-time data collection of payroll data, namely tax and superannuation information, to improve compliance and transparency in the payroll process.

Announced in 2017, the move is set to have a significant impact on employer superannuation contributions, allowing the ATO and other government agencies to monitor payment of superannuation guarantee entitlements to employees, and identify non-compliant operators.

While there is no change to the due date for payment of PAYG withholding liability, which currently differs depending on the size of the organisation, employers will soon have the option to pay PAYG withholding at the time of lodging their STP – streamlining the administrative process and reducing overdue payments.

Although adoption of the process is currently optional from 1 July 2017, STP will be mandatory for all business with 20 or more employees from 1 July 2018. For employers with 19 or fewer employees they must comply with STP requirements by 1 July 2019.
For a simplified explanation of STP watch this short video – click here

For more information about STP and the impact on employer superannuation contributions, click here to contact your First Super business development representative.