New era of payroll reporting has started


New era of payroll reporting has started

Flor- Hanly - Sunday, October 21, 2018

Single Touch Payroll (STP) reporting off to successful start

Around 40,000 employers are already sending tax and superannuation information from their payroll software each time they pay their employees.

payrollThe STP transition year for employers with 20 or more employees started on 1 July, delivering on the commitment to streamline reporting obligations and make sure employees are paid the right amount of super.

Assistant Commissioner John Shepherd acknowledged the significant work undertaken to get to this point and commended those involved.

“Software providers and tax professionals have done a great job getting their clients’ systems and processes ready for STP reporting.

“Their collaboration with the ATO in designing and ensuring the readiness of STP has made this first step in the implementation of STP a success,” Mr Shepherd said.

Once an employer starts reporting through STP, their employees can see their year-to-date tax and super information in ATO online, accessed through myGov. At tax time, the STP data will be pre-filled into their tax return and payment summary information will be available to their registered tax agent.

“Over 2.5 million employees can already see their tax and super information being updated after every pay in myGov. This gives them a better picture of their super entitlements and more control over their retirement savings.”

“As with any major transition we recognise that some payroll software providers may require additional time to transition their employer clients to STP-enabled software.” Mr Shepherd said.

Penalties generally won’t apply in this transition year as the ATO continues to focus on providing tailored support to employers as they commence their STP reporting.

Employers who need additional time can also apply using the ATO’s online form or by asking their tax agent or BAS agent to make an application on their behalf.

Around 73,000 employers with 20 or more employees are expected to transition to STP reporting this financial year. Around 15,000 small employers with 19 or fewer employees have also voluntarily started their STP reporting.

Flor-Hanly does all the things most accounting firms do such as taxation and superannuation. What makes us different however is that we have a bigger focus. Call us in Mackay on 07 4963 4800.

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