Single Touch Payroll Reporting

The A.T.O’s introduction of the Single Touch Payroll Reporting (STPR) is set to streamline the way employers report some tax and superannuation information to the A.T.O. While there will be some immediate administrative benefits for early conformers, the introduction of STPR is compulsory from:

• 1.7.2018 for businesses that employ more than 20 people
• 1.7.2019 for businesses that employ less than 20 people

Some of the Main Changes Include:

• Ordinary Time Earnings, salary or wages and PAYG withholding information will be reported and available to the Commissioner in ‘real time’ when payroll is periodically processed by the employer
• Employers will need to acquire SBR-enabled software to comply with their PAYG withholding obligations
• New employees will be able to prepare TFN declarations and Super Choice forms online
• The STPR reports for PAYG withholding will become the approved form for reporting PAYG withholding (currently this information is in the activity statements)
• Employers that have reported their PAYG withholding obligations via STPR will have their PAYG withholding prefilled by the A.T.O on their BAS
• Large withholders will no longer report PAYG withholding on their activity statement
• Employers will be provided with the option to pay their PAYG withholding at the same time they lodge their STP reports to further align the reporting and payment of PAYG withholding through the payroll system
• Employers will no longer be required to submit an annual PAYG summary report to the A.T.O It is possible employers may no longer need to provide annual payment summaries to employees who will have access to their payroll information via their myGov account.

Action to Be Taken

Understanding the changes and how they apply to your organisation and beginning the planning process will help provide a smooth transition to this new reporting requirement.

Well before the compulsory 1.7.2018 start date for business that employ more than 20 people, your payroll system will need to be STPR enabled to comply with the new law. Additional costs may be incurred by employers, particularly those that do not currently use software based payroll systems or out-of-date payroll software systems. There are a range of payroll software providers now working with the A.T.O on product updates from 1.8.2017 to ensure STPR enablement.

Relevant employers should review their company’s SGC and PAYG payroll processes to ensure the treatment of all types of payments and remuneration are correct well before the two deadlines.

Three Crucial Steps to Get Things Started

• Consult with your accounting software provider to establish the current payroll processing arrangements will support the changes
• Conduct a detailed risk review of your current payroll procedures, including PAYG, superannuation, allowances, payroll deductions and the timeliness of payments
• Your HR processes should be reviewed and monitored to ensure employees are being treated fairly and paid correctly.

And most importantly if you have any questions regarding these changes then please contact us.