Whether you are an employer or employee, the new reporting regime for payroll called Single Touch Payroll (STP) will impact you from 1 July 2019.
All employers must now be in STP regardless of the number of employees – full time, part time or casual.
STP means that payroll information such as salary and wages, PAYGW and super must be reporting each and every pay run per employee.
This information needs to be transmitted electronically via the cloud using third party software vendors. The ATO are not providing any portals or software applications to assist. So you need to purchase a solution (there are some free ones available).
Previously, the ATO was informed about payroll data per employer at the same time as the IAS/BAS (notionally quarterly), then per employee annually when the “group certificates” where prepared.
Employees will not receive a “group certificate” once their employer is in STP, with equivalent information being available in MyGov or via their tax agent.
The mischief that STP is trying to combat is business owners that are not meeting PAYGW and SGC obligations.
There are some grace periods for business owners and small employers with less than 4 employees, however, by 2021 the ATO are expecting everyone will be reporting each pay run.