Single Touch Payroll Reporting
The following information is sourced from the ATO website. Further information/clarification is available here.
Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO.
If you are using a solution that offers STP reporting, such as payroll or accounting software, you will send your employees' tax and super information to us each time you run your payroll and pay your employees.
The information is sent to us either directly from your software, or through a third party, such as a sending service provider.
If you have a software provider, they can tell you more about the type of STP solution they offer.
There will also be a number of options available for employers who do not use payroll software, such as No-cost and low-cost Single Touch Payroll solutions.
Options will depend on your number of employees:
The way STP information is sent will depend on the software you use. STP reporting will be offered in one of the following ways with:
ATO systems will match the STP information to our employer and employee records. Your employees will be able to see their year-to-date tax and super information in ATO online services, which can only be accessed through myGov. Their data is updated every time you report (each pay day for most employers). Without STP reporting, employee data is only reported at the end of the financial year.
If you make mistakes in your STP report, you can correct it in your following report. We won't penalise you for making mistakes you correct.
At the end of the financial year, you'll need to finalise your STP data. This is a declaration to the Commissioner to state you have completed your reporting for the financial year.
You will no longer have to give your employees a payment summary for the information you've reported and finalised through STP. Once you finalise your data, your employees or their registered agent will be able to lodge their income tax return using the STP information available in ATO online.
You will no longer need to provide us with a payment summary annual report (PSAR) at the end of the financial year for the payments you report through STP.
From 2020 we will pre-fill activity statement labels W1 and W2 for small and medium withholders with the information you report to us through STP. If you currently lodge an activity statement you will continue to do so.