Guide to Single Touch Payroll (STP)
This article briefly explains what you need to know and what you’ll need to do with MYOB to ensure you meet your ATO obligations in terms of Single Touch Payroll (STP).
From 1 July 2019 any Australian business who has employees is required to be reporting their payroll information through Single Touch Payroll.
What is STP?
Single Touch Payroll (STP) is an ATO initiative which requires every business to report PAYG withholding, superannuation, salaries and wages each time they pay their employees (with each ‘pay event’) . Whilst this may seem a daunting prospect for business it is easily achieved using MYOB software as MYOB has a range of STP compliant payroll solutions.
How it Works
STP sends tax and super information direct from your business accounting software to the ATO straight after the payroll run is completed. Regardless of the payroll frequency, whether a weekly, fortnightly, bi-monthly, or monthly cycle, the MYOB STP compliant software will automatically send a report to the ATO containing all of the information they need. Then, come the end of the financial year, the ATO will already have most of the details they need about payments made to an employee. They’ll then mark the payroll information as finalised on the employees’ myGov record. At the end of each payroll year the business will no longer be required to produce ‘Payment Summaries’ for their employees nor report to the ATO their annual payroll details via the ‘EMPDupe file’.
Who is it for?
With new legislation now passed STP is for all employers, big and small. Large employers with 20 or more employees were initially required to be STP compliant on the 1st July 2018. Employers with 19 or fewer employees will need to begin reporting through STP from 1 July 2019. The ATO has provided an extension for these employers to the 30th September 2019.
So basically every Australian business with employees is required to be STP compliant now!
MYOB Software Benefits
One of the biggest changes STP reporting brings is the fact that key employee data like wages, tax, allowances, and super are now to be reported with each pay run rather than annually.
Without a software solution, collating, verifying and sending this information with this regularity would represent an enormous compliance burden for businesses.
Luckily, MYOB has a range of STP compliant solutions available right now to suit clients of any size. Any company that needs to be STP compliant is able to submit via MYOB Essentials, the MYOB AccountRight Live suite of payroll software solutions, or MYOB Advanced.
By using a current MYOB STP-compliant software product you will have peace of mind knowing that your ATO obligations are been handled and reported as employees are paid directly from your software, your annual ‘Payment Summaries’ (previously called ‘Group Certificates’) and ATO end of year summary demands are finally removed, your data accuracy is maximised and transfer is seamless, and your employees can view their payroll and tax position at any time throughout the year in their myGov online account.
Why choose MYOB for STP?
MYOB is the leading STP solution provider because their software:
- Checks company information and employee details against ATO parameters to ensure STP accuracy and completeness and also assigns an ATO category to all MYOB payroll categories prior to the first submission.
- Keeps detailed logs of all submission attempts to the ATO. If ever a file can’t be received by the ATO, MYOB will automatically send it back into the queue for processing.
- Can allow a business to appoint a MYOB service provider such as Bart Consulting to submit online the STP details each ‘pay event’ on their behalf.
- Gives users a detailed view of their pay run submission before and after it has been submitted to the ATO.
- Allows the pay authoriser at the end of each pay run to simply declare and submit the pay run to the ATO in one click.