Single Touch Payroll Reporting (STPR) – Does this affect you?

15th March 2018

The ATO have recently introduced a new initiative to receive real-time payroll information about your employees each pay run. This change is known as Singe Touch Payroll Reporting (STPR).

You will need to count the number of employees on your payroll on 1 April 2018 to determine if you will be required to report through STPR. If you have 20 or more employees on your payroll per entity/business (irrespective of your employment arrangement i.e. casual, part-time, full-time) you will need to report through STPR. Please note, if your employee numbers drop below 20 employees after 1 April 2018, you will still be required to report through STPR.

Below is a summary of STPR which highlight the areas we think you should be aware of and where we can help.

Why:

STPR has been implemented so that real-time payroll information will be available to the ATO and to your employees who are registered with a MyGov account.
This means the ATO will have up-to-date information which they will then use for compliance purposes (i.e. data matching, PAYG withholding and Super Guarantee adherence). It also means you may no longer be required to prepare and lodge an annual PAYG report and payment summaries to the ATO and your employees.

Compatible software:

You will need to ensure that your current payroll system is/will be Single Touch Payroll-enabled. If you have the most recent version of your accounting/payroll package, it is most likely that it will be STPR-enabled. If you are unsure of whether your software is compatible, please contact your software provider or Kirstie Bateup from our office.

Areas to review: 

As the ATO will now have real-time data, it is imperative that your reporting obligations are compliant. We feel that the key areas to review before 1 July 2018 are as follows:

  1. Superannuation Guarantee – ensure this is being calculated on correct pay items at the correct rate;
  2. PAYG Withholding – ensure appropriate levels of PAYG withholding are being withheld;
  3. Employee termination payments/redundancies – ensure correct allocation of pay items;
  4. Payroll procedures for new and departing employees – including TFN declarations and super choice forms, and;
  5. Ensure correct remuneration is reported to Payroll Tax/RTWSA.

Read More from the ATO

https://www.ato.gov.au/business/single-touch-payroll/about-single-touch-payroll/