The STP software sends payroll data to the ATO at each pay cycle.
Currently PAYG withholding tax is reported to the ATO via the monthly or quarterly BAS and the employer’s superannuation contributions are reported via the existing Super Stream reporting requirements.
Going forward, STP will replace the two reporting processes and the BAS will be prefilled at W1 and W2, based on the STP reporting.
The move to Single Touch Payroll will supposedly streamline the payroll process saving time and money for small business. There will be a learning curve, but anything that makes the payroll task easier and reduces the time spent in the back office, must be beneficial.
Employers with fewer than 20 employees, (which is most small businesses) will be required to comply with Single Touch Payroll from 1 July 2019. All the major accounting software providers such as MYOB, Xero and Quickbooks will be STP compliant by the required dates.
For more information on ‘Single Touch Payroll’, ‘Super Stream’ or any other payroll matter, contact Amanda Klye on 03 9585 7555 oremail Amanda