What is Single Touch Payroll (STP)?
Single Touch Payroll (STP) is an Australian Government initiative designed to streamline the payroll reporting process. It requires employers to report employee salaries and wages, PAYG (Pay As You Go) withholding, and superannuation information directly to the Australian Taxation Office (ATO) each time they process their payroll.
Key Features of STP:
- Real-Time Reporting: With STP, employers must submit payroll information to the ATO each pay cycle rather than annually. This real-time reporting enhances transparency and accuracy in payroll data.
- Simplified Compliance: STP simplifies end-of-year processes. Employers are no longer required to provide employees with a payment summary (Group Certificate), as the ATO now has up-to-date payroll data throughout the year. Employees can access their information directly through myGov.
- Integration with Payroll Software: Most modern payroll software systems are STP-enabled, allowing seamless and automated reporting to the ATO. This reduces manual data entry and the potential for errors.
- Improved Accuracy: Automated reporting minimizes errors and discrepancies in payroll data.
- Increased Efficiency: Real-time reporting reduces the burden of end-of-year payroll reconciliation and compliance tasks.
- Enhanced Transparency: Employees have real-time access to their payroll information, promoting transparency and trust.
To comply with STP requirements, businesses must use STP-enabled payroll and report payroll events every pay period.
Click HERE to access our instruction on how to lodge STP events in Xero.
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Contact - 1300 699 161Email - info@befinancial.com.au
32 Main Rd Bakery Hill, VIC 3350