Single Touch Payroll (STP) is a government initiative which streamlines business reporting obligations. When an employer pays their employees under STP, the information is sent directly to the ATO at the time of the payroll.
STP became compulsory for employers/businesses with a headcount of 20 or more employees on 1 July 2018. For small employers with 19 or fewer employees, it is compulsory to report through STP by 30 September 2019 and they have the option to start anytime from now.
CloudPayroll automatically manages this process on behalf of clients as part of our MICRO, Premium and Enterprise plans. We also include an option for employers to voluntarily pay the PAYG at time of the payroll via bank ABA file. We provide an online tool enabling our clients to provide notification to the ATO when tax YTD data is considered final at the end of the financial year.
The business pay cycle did not change when STP took effect. When employers complete their payrolls on CloudPayroll, their employees’ salary or wages, PAYG withholding, and superannuation information is sent to the ATO. The payment due date for PAYG withholding and superannuation contributions also did not change, however, you can choose to pay earlier.
With STP, employees are able to access more timely tax and superannuation information online through ATO Online services in myGov.