From 1 July 2017 you will be able to report to the ATO through the Single Touch Payroll (STP). This will become mandatory from 1 July 2018 for clients with 20 or more employers. There is no mandatory deadline for smaller employers at this stage. STP streamlines the way employers report certain taxes and superannuation to the ATO. When employers pay their staff, the employees’ salary/wages will be automatically reported to the ATO. Under STP employers also have the option of paying their PAYG withholding to the ATO at the same time that they pay their staff (this could cause cash-flow issues for employers, and hence is optional).
STP will also:
- See changes to the way superannuation is reported to the ATO. Although there will be no change to the way employers pay superannuation, when payments are made to employees’ funds, the information will be automatically reported to the ATO.
- Employees will also have access to pre-filled forms (via their myGov account) including TFN Declarations, and Superannuation Choice forms when they commence a new job. This is aimed at streamlining the paperwork involved for employers when putting on new workers.
Over the coming months leading up to 1 July, the ATO will be helping employers transition to STP should they wish to do so.