ePayroll Blog

 

Single Touch Payroll: The Changes Coming in 2017

19 / 4 / 2017



The Australian government announced Single Touch Payroll back in 2014, a new initiative to streamline tax and superannuation reporting obligations, allowing employers to report salary or wages, PAYG withholding and super details directly to the ATO at the same time as they pay their employees.

The obligations came into effect in September 2016.



What changes will STP bring? 

For employers:
Direct payroll reporting
ePayroll will report salary or wages details , PAYG Tax withholding and super information to the ATO at the time employees are paid thereby satisfying the employer obligations.

Super contribution reporting
Information will be sent to the ATO when an employer pays an employee’s super contributions to their nominated fund. The precise message specifications are yet to be defined by the ATO and until they are done this will be excluded from the information sent.

Employee end-of-year pay information
Where ePayroll reports an employees’ details through Single Touch Payroll there will be no need to provide PAYG Payment Summaries at the End of Financial Year.

Online commencement of new employees
As a part of Single Touch Payroll, employers will be required to provide on boarding details (TFN Declaration, Super Member Choice form) to the ATO. ePayroll is in the process of developing an on boarding tool that will greatly facilitate the meeting of this obligation.


For employees:
More information online
With Single Touch Payroll employees will be able to see more of their tax and super information online.

Year-to-date and end-of-year picture
Employees will be able to see their year-to-date salary or wage amounts, the tax that has been withheld and their super entitlements throughout the year. This includes the end-of-year information usually included in their Payment Summary.

Who is affected? 
• For employers with 20 or more employees, STP is compulsory from 1 July 2018
• STP is optional for employers with 19 employees or less, it is not a requirement at this stage 

Although there is no legal obligation, employers can start to transition to Single Touch Payroll from 1 July 2017. Not all the message formats have been completely defined and until they are specified Single Touch Payroll cannot fully proceed.

Currently with ePayroll/eCorporate?

Single Touch Payroll is a major development in the Australian regulatory landscape and we can assure our clients that we'll be at the forefront of the STP changes.
  
Our objective is to keep innovating our service offering and that means we can provide a commitment to our clients that any new product developments, software changes or updates required by the ATO will be fully implemented and available prior to the timelines. 

To receive the latest advancements around Single Touch Payroll, check back regularly on our website or subscribe to our newsletter.

Information sourced from ATO STP Communication Engagement Pack, April 2017

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