The Australian Tax Office (ATO) is changing the way they collect payroll and superannuation information from employers with the introduction of Single Touch Payroll (STP).
The date STP requirements apply to employers will be based on the number of employees in their group as at 1 April 2018:
- 20 or more employees – changes apply from 1 July 2018
- Less than 20 employees – changes apply from 1 July 2019.
The intention behind the new STP requirements is to provide more frequent and up to date information to the ATO and create greater transparency for all parties including employers, employees, regulators, providers and superannuation funds.
Whilst superannuation funds don’t need to provide more information to the ATO at this stage, in the future all contributions paid to a fund will be matched to the STP information provided by employers to the ATO, to ensure all superannuation commitments have been met on both sides.
What do employers need to do?
It’s important that all employers familiarise themselves with the STP requirements provided on the ATO website.
If employers are using third-party payroll products and services, they will need to check they have been updated to meet STP reporting requirements to the ATO.