Single Touch Payroll (STP) is a change to the way employers report their employees’ tax and super information to the Australian Tax Office (ATO).

The focus is now on small businesses with 19 or less employees with STP reporting mandatory from 1 July 2019.

The ATO is currently writing to small business employers to inform them that they do not need to wait for legislation to pass before they start reporting through STP.

The Bill has been passed by the Senate with a number of proposed amendments. It has been referred to the House of Representatives to consider the amendments put forward, but small businesses can still expect STP to kick off as expected on 1 July 2019.

Our Mukiwa clients do not need to action anything yet and we will be in touch prior to the deadline to get things ready for you.

Xero is STP ready at the flick of a switch. Our only requirement from you is to complete an Annual Declaration authorising us to submit your payroll report monthly which we will send out for completion in due course.

Micro employers (1–4 employees) will also have a number of alternate options that are not available to employers with 20 or more employees – such as initially allowing your registered tax or BAS agent to report quarterly, rather than each time you run your payroll.

If you are interested in all the detail, click here to read more about Single Touch Payroll on the ATO website.

Ask your consultant from Mukiwa if you have any questions and we look forward to a seamless transition from 1 July 2019.