The ATO recently introduced new legislation to mandate Single Touch Payroll (STP) reporting for all business in Australia, after a successful rollout to businesses with over 20 employees. This change in legislation is expected to impact around 700,000 small businesses.
What is Single Touch Payroll (STP)?
STP reporting was brought into place to make interactions between the ATO and businesses more efficient. STP allows employers to send tax and super information to the ATO each pay run. For more information on what STP is about visit the ATO website, click here.
What does it mean for me?
If you’re a business with less than 20 employees you have until the 1st of July 2019 to start reporting through STP. Firstly, check with your payroll software provider to find out if they’re supporting STP. Some software allows you to report through STP seamlessly while processing your pay run, while others require customers to work with a third-party Sending Service Provider (SSP), such as MessageXchange, to send the information to the ATO.
SSPs enable the transmission of data from Digital Services Provider (DSP), in other words your software provider, to the ATO.
|Your software provider will provide the data required by the ATO||Your SSP transforms and sends the data so it conforms to ATO requirements||Received by ATO for processing|
Our solutions can even send you responses from the ATO for you to keep on top of your reporting obligations.
Want to know how our STP solutions can help you? Speak to one of our experts today or fill out your information here and we will be in touch shortly.