Single Touch Payroll (STP) reporting is an Australian Government initiative aimed at simplifying business reporting obligations. It requires employers to report salaries and wages, PAYG withholdings, and superannuation information to the Australian Taxation Office (ATO) at the same time as they pay their employees. This system makes it easier for the ATO to ensure employers are meeting their payroll obligations and for employees to see their information in real-time through myGov.
As of our last update in April 2023, there have been several developments in STP reporting:
STP Phase 2 Expansion:
The STP reporting has moved into Phase 2, which requires additional payroll information to be reported. This phase aims to reduce the reporting burden for employers on other government agencies by including more detailed information in payroll reports. This includes disaggregating gross income, reporting of different types of paid leave, and providing more granular information about the makeup of an employee’s pay.
Deadline Extensions:
The ATO had provided extensions for the implementation of STP Phase 2 reporting for some businesses, recognizing the challenges and the need for software updates to comply with the new requirements. Businesses were encouraged to work with their software providers to ensure their solutions were updated and compliant with STP Phase 2 requirements.
Support for Small Employers:
The ATO has continued to support small employers in making the transition to STP reporting, including those with closely held payees. There have been resources and tools provided to help small businesses comply, including webinars, guides, and a deferred start date for some entities.
Penalties and Compliance:
While the ATO initially adopted a lenient approach towards penalties for non-compliance with STP reporting, emphasizing assistance and support to help employers transition, there has been a shift towards more stringent compliance measures as the system matures.
For the most current information, including any recent updates or changes to STP reporting obligations or deadlines, you can apply for Australian Payroll Association membership here.
