Single Touch Payroll STP Presenter Shane Cremin B

Single Touch Payroll (STP) Presenter: Shane Cremin (B. Com. ) 20 June 2019

What is Single Touch Payroll (STP)? • Sends tax and super information to the ATO as you run your payroll • Payroll process and pay cycle is unchanged • Requires STP-enabled payroll software • Super liability information to be reported for the first time

New Requirements From 1 July must report PAYG Withholding through STP or Activity Statements Tax deduction is denied if not reported Deduction may be restored if voluntary disclosure is made

STP Categories 20 or More Employees 5 to 19 Employees 1 to 4 Employees (Micro Employers) At one time

20 or More Employees Already reporting through STP Headcount was required 1 st April 2018

5 to 19 Employees Start reporting any time up to 30 September 2019 Can ask for a deferral if not ready Tax Agent can apply for you

1 -4 Employees (Micro Employers) May not be using Payroll Software No-cost and low-cost STP solutions available or in development May consist of closely held payees which are not paid a regular salary or wage.

Who are Closely Held Payees? Family Members Directors Trustees or Trust Beneficiaries

STP for Closely Held Payees Starting July 2020 Reporting quarterly with BAS Concession form will be made available PAYG Summary and Annual Statement required Other employees still have to be reported by STP Simpler to report by STP if paid normally

Exemptions to STP Employers with seasonal workers Insolvency practitioners Long service leave and redundancy schemes Employers with a withholder payer number

STP Reporting Pay events (must have at least 1 employee record) Out of Cycle payments (Irregular Payments) Super Liability and/or Ordinary Time Earnings (OTE) Year to date information Gross Wages (W 1 on BAS) Pay. G Witheld (W 2 on BAS)

Correcting STP Reporting Errors Mistakes can be corrected in following pay as long as in same financial year No penalties for correcting these mistakes Year end information may be less then previous report after correction

STP Solutions End to end solution – Sent directly from software 3 rd party sending service provider (SSP) integrated into software Exported to SSP externally

Changes Year-to-date tax and super for employees available online in through My. Gov Employer no longer required to provide PAYG Summary or Annual Report Activity Statements W 1 & W 2 will be prefilled in July 2020

STP Software Register https: //api. gov. au/productregister/ Low Cost Solutions ($10 per Month or Less) https: //www. ato. gov. au/business/single-touch-payroll/indetail/low-cost-single-touch-payroll-solutions/

Frequently Asked Questions Do I have to register for STP? No, when you lodge your first STP report the ATO will know that you are now reporting. Can Hunter Partners help us transition to STP? We can provide advice about: • Payroll software; • Setup; and • Answer other queries.