Single Touch Payroll (STP) reporting is almost a reality for small businesses.
Legislation to extend STP reporting to employers with 19 or less employees was recently passed by Parliament and applies from 1 July 2019. That means, all employers will be legally obliged to submit their payroll data to the ATO from 1 July.
This is a big change for you and for your employees. That’s why we’ve prepared the following information and FAQ’s for you to share with your employees. You might like to copy and paste it into an email to share with your employees. Just be sure to update the fields so that you can personalise your message.
Important changes to the way [we / or insert your company name here] report your tax and super information to the Australian Tax Office (ATO).
The reporting change is called Single Touch Payroll (STP) and it applies to all employers from 1 July 2019. It’s important to note that [we / or insert your company name] are required to send your information to the ATO.
From [insert the date you will start STP reporting] [we / or insert your company name] will begin reporting your tax and super information in ‘real-time’ to the ATO each time we pay you rather than annually. This means there will be some changes for you.
• You will see your year-to-date tax and super information in myGov.
• Payment summaries will also be in myGov.
• You can check if your super has been paid.
• Your registered tax agent (if you have one_ will also be able to access your STP information.
WHAT ARE THE ADVANTAGES OF STP FOR [OUR / OR INSERT YOUR COMPANY NAME HERE] EMPLOYEES?
Once the required information is provided to the ATO, you will be able to see your year-to-date tax and superannuation information online at any time through your myGov account by accessing linked ATO online services. While it is not compulsory to have a myGov account, you won’t be able to see your year-to-date tax and superannuation information online without one.
If you don’t have a myGov account, go to: my.gov.au and ‘Create an account’. You can then link to your ATO account (and other Government services).
WHAT HAPPENS WITH YOUR ANNUAL PAYMENT SUMMARIES?
As part of these changes, employers are no longer required to provide Annual Payment Summaries to employees, as this information will be available to you via your myGov account (via the ATO link).
[You might also like to include some information about the 2018/19 financial year. For example, We will provide payment summaries for the final time for the 2018/19 financial year. From 2020 you will need to access this information via your myGov account.]
BENEFITS AT TAX TIME
For those who prepare and lodge their own annual tax return, the information previously contained within a ‘Payment Summary’ will be pre-filled into the ATO’s online ‘myTax’ service (as it is currently, based on information an employer provides in an annual summary file to the ATO). Registered tax agents will also be able to access this information on your behalf.
For some more information about STP, please visit: