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What is Single Touch Payroll?

Single Touch Payroll has been designed to streamline employer reporting to government agencies, an initiative implemented by the Australian Government. With STP, employers have the ability to report employee payroll information to the ATO with STP-enabled software. If you’re reading this and asking yourself ‘what is Single Touch Payroll?’, and you’re new to the employing scene, Go Figured Bookkeeping are here to discuss the ins and outs of this initiative, how to use it, and how you can get started on implementing it into your business.

Give us a call on 07 3608 4206 today for questions relating to our bookkeeping service or our end of financial year services Brisbane business rely on year after year.

What is One Touch Payroll?

If you’re wondering about Single Touch Payroll what it is, is a system that requires employers to report any salaries and wages paid, on a regular basis throughout the year. This doesn’t just include salaries and wages, however, it also includes:

  • Salaries and wages
  • Pay as you go (PAYG) withholding
  • Superannuation liability information.

Directly from the ATO, “STP offers the ability to streamline your reporting as opposed to having a number of separate reporting processes, to help you achieve efficiencies of real-time reporting and help with your compliance processes.”.

July 2018 – July 2019

Launched on the 1st of July 2018, the STP initiative is pertinent for employers with 20 or more employees. A year later, on the 1st of July 2019, the initiative opened for employers with more than 19 or fewer employees and became a mandatory obligation.

1st January 2022

The data collected through the Single Touch Payroll was expanded in January of 2022 (referred to as STP Phase 2) to collect additional payroll information. All employers should now be STP reporting and fully transitioned to STP Phase 2 reporting – unless covered by a deferral or exemption. In saying that, if you are new to employing, and you’ve started or will be starting to pay employees, it is imperative that you start reporting now through software enabled with STP Phase 2.

Do this to ensure you avoid any possible penalties.

Reporting With STP

There are a few methods to consider when it comes to reporting through STP, and they are as follows.

  • Reporting directly from STP enabled software, which sends a report directly to the ATO or
  • Through a third party such as Go Figured Bookkeeping. We act as your external service provider, reporting on your behalf so there’s one less thing for you to worry about.

If you don’t use any accounting or payroll software with STP included, don’t stress. There is a work around!

  • Apply to the ATO in hopes of being granted more time. This can be done using the ATO’s online forms to apply for a deferred start date.
  • If you live in an area with intermittent or zero internet connection, you can ask the ATO for an exemption or
  • If you have 4 or less employees, you can use a ‘low-cost STP solution’ for a small monthly fee.

Despite all of these options, there are businesses that are not yet STP compliant. If you fall under this category, and your payroll does not offer STP, Go Figured Bookkeeping are here to make the process simpler. We will assist with the transition phase and develop a plan for your business moving forward to manage STP over a period of time (with the ATO). This includes applying for a deferral if your business requires it. We understand that changes to processes you’ve known for a long time can feel overwhelming, and oftentimes frustrating – this is why we are here. To assist you, as a business owner.

Contact Go Figured Bookkeeping for More About STP!

Needing a little more info on what is Single Touch Payroll? We’re here to help! Get in touch with us on 07 3608 4206 to discuss our bookkeeping service, or to ask about our STP payroll services Brisbane business know and trust. For general queries, email our team directly via [email protected] or reach out through our online form.

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