Single touch payroll is a payroll reporting requirement introduced by the ATO. If you had 20 or more employees on the 1st of April 2018 you are required to report payroll information through STP enabled software from 1 July 2018 (Deferrals can be granted).
Subject to legislation passing those employers with 19 or less employees will be required to report payroll information from 1 July 2019.
Single touch payroll is part of the Australian Governments commitment to streamline employer reporting obligations. STP will capture PAYG withholding, salary, wages and superannuation information.
You will not be required to provide payment summaries to your employees for the payments you report and finalise through STP
The ATO will make this information directly available to your employees online through myGov. This information will be called an employment income statement. It is the equivalent of a payment summary.
Once you make a finalisation declaration, the ATO will notify your employees that their employment income statement is 'tax ready' in myGov and they can use it to complete their tax returns.
Single touch payroll information will be pre-filled into myTax for individuals who prepare and lodge their own tax returns. It will also be made available to tax agents.
You will continue to report and pay your employees' superannuation entitlements through your existing SuperStream solution (including the Small Business Superannuation Clearing House). This does not change as a result of STP.
More information about Single touch payroll can be found visiting the ATO website. (https://www.ato.gov.au/Business/Single-Touch-Payroll/)
If you have any questions or concerns about single touch payroll please contact our team at Melbourne Tax Advisory.