Single Touch Payroll (STP), is a new way of reporting tax and superannuation information to ATO.
Each time pay salary to your employee you need also sending their salary information to ATO along with pay as you go (PAYG) withholding tax and superannuation information through a STP enabled software or solution. The amount submitted should be year-to-date figure.
When and how you report depends on what type of employer you are:
• Small employers with 19 or less employees – STP reporting started from 1 July 2019.
• Large employers with 20 or more employees – you should already be reporting through STP for a while.
Although STP implementation already kicked in for a while, there are quite a few small businesses still do not know what is STP and how to use it properly until now. During COVID-19 period, a lot of small business have some difficulties to apply and receive government grants this is due to lack of records to support for their employee payroll system. Although some of them may have manual records, whereas this many not be accepted by ATO.
Single Touch Payroll (STP) Link
Claire Chang