Single Touch Payroll (STP) requires payroll information to be reported to the Taxation Office each time you pay your employees, rather than monthly or quarterly via an Activity Statement.
If you were a large employer on 1 April 2018 with 20 or more employees you will need to start reporting via Single Touch Payroll from 1 July 2018.
If you have 19 employees or less you won’t be required to be ready for STP until 1 July 2019 at this stage (the start date is yet to be legislated)
- You can opt in at any time from 1 July 2018
Please refer to our previous Blog post for more information regarding Single Touch Payroll and what it means for you: https://oconnellsobm.com.au/single-touch-payroll/
The following software providers have released the following updates regarding their STP compatibility:
- Xero will progressively roll out STP from 1 July 2018
- Xero will let you know via the Payroll screen when it is time for you to opt into STP
- Until such time as Xero prompts you to opt in, there is no further action you need to take
- The ATO has granted Xero subscribers a deferral until as late as 31 December 2018. Until Xero prompts you to make the switch, you can continue processing payroll as normal and remain fully ATO compliant without any penalty.
- Any desktop versions of MYOB will not be compliant with STP (including any new version releases)
- Account Right Live (Online) versions are now compliant and the software is available
- Essentials will be compatible and the software available in the coming weeks
- Any desktop versions of the program (from 2018 and later) will be compliant (versions prior to 2018 will not be compliant)
- The following Reckon products will be compliant from 1 July 2018
- Reckon One
- Accounts Hosted
- Reckon Accounts 2018 version onwards
- Payroll Premier 2018/19 version onwards
If you are using another program not listed above there may be an alternative option available to ensure you are STP compliant via a third party provider. We are monitoring these available products and can advise you of these options closer to the compliance due date. Alternatively, now might be the time to upgrade your accounting software!
If you have any questions please feel free to contact our office.