Accounting    Single Touch Payroll

Single Touch Payroll

Single Touch Payroll (STP) is a payroll reporting system introduced by the Australian government to streamline employee tax and superannuation information reporting.

Under STP, employers must report their employees' salary and wages, PAYG withholding tax, and superannuation contributions directly to the Australian Taxation Office (ATO) each time they run their payroll.

The key points about Single Touch Payroll:

Reporting: Employers report employee information electronically to the ATO through payroll software or a third-party service provider. The information includes salaries, wages, allowances, deductions, and superannuation contributions.

Frequency: Employers report the payroll information to the ATO every time they process their payroll, usually on a weekly, fortnightly, or monthly basis.

Employee access: Employees can access their year-to-date payroll information, such as gross wages, taxes withheld, and superannuation contributions, through their myGov account linked to the ATO.

Superannuation reporting: Single Touch Payroll also streamlines the reporting of superannuation contributions. Employers report each employee's superannuation amounts, salary, and wage information.

Finalization declaration: At the end of the financial year, employers must make a finalisation declaration for each employee. This declaration indicates that all the necessary payroll information has been reported for the financial year.

Compliance and penalties: STP helps improve compliance by providing the ATO real-time visibility into employer obligations. Penalties may be imposed for non-compliance or late reporting.

Success Tax Professionals practices deliver secure, accurate and compliant payroll to businesses of all sizes. They can manage your staff pays, organise timesheets, and ensure compliance with SuperStream and Single Touch Payroll (STP). Consulting and using a Success Tax Professionals practice offers a complete payroll solution for businesses of all sizes for a fixed monthly fee.