Single Touch Payroll (STP) in Payroll Processing

Since the introduction of Single Touch Payroll (STP) on July 1, 2018, for larger employers and on July 1, 2019, for smaller ones payroll processing has significantly changed for Australian businesses.

The Genesis of Single Touch Payroll (STP): STP is a mandatory reporting obligation introduced from July 1 2018. Employers, using STP-enabled payroll or accounting software, automatically submit payroll information to the ATO with each payroll processing cycle. This real-time reporting mechanism facilitates a more accurate and transparent exchange of data between businesses and the ATO.

As of January 1, 2022, STP underwent a significant expansion known as STP Phase 2. This expansion aimed to collect additional payroll information, making the reporting process even more comprehensive.

Eliminating Year-End Processes: Before STP, businesses traditionally processed their payroll records at the end of the financial year, producing two summary reports for the ATO. With the advent of STP-enabled software, this labour-intensive year-end process is replaced by a continuous and automatic reporting system. Employers no longer need to prepare payment summary annual reports, as the ATO is updated with each payrun.

Empowering Employees: STP not only benefits employers but also empowers employees by eliminating the need for employers to provide payment summaries. Instead, the ATO makes the employee’s income statement available through myGov, notifying them that it’s ‘tax ready’ for their tax return. This transition ensures that employees have direct access to accurate and up-to-date information about their income, fostering trust and transparency.

SBA Payroll Processing and STP Compliance: Team SBA, with over 12 years of experience working with law firms and accounting firms and general busineses, understands the nuances of STP compliance and ATO regulations. Team SBA is well-versed with the latest Accounting Softwares and ensures accuracy and efficiency in payroll processing, all while maintaining strict compliance with relevant regulations.

For businesses seeking to outsource administrative tasks like payroll processing, Team SBA is here to make payroll management seamless.