Single Touch Payroll, also called STP or one touch payroll, is an initiative from the ATO to encourage frequent salary reporting. This means you’re required to report salaries and wages, PAYG withholdings and superannuation every time you pay your employees.
This change to payroll reporting is the most significant change in decades and effectively eliminates lodgement of payroll information via paper or manual submissions once a year. One of the biggest advantages is getting precious time back, particularly around end of financial year, in the following ways:
- The ATO will pre-fill PAYG payroll fields W1 & W2 in your BAS, which eliminates potential errors and double handling
- There is no longer any need to generate and distribute payment summaries to employees as this information will be available online via a myGov account
- On-boarding new employees is quicker with online commencement forms including Tax File Number Declaration.
For the change to be effective, employers need to ensure the accounting software used is updated to submit compliant reports every payday. Here’s what that means:
- If you use online payroll software, it should be able to handle the job. Just make sure it produces ATO-compliant reports.
- If you use desktop payroll software, you’ll need to find a service that can upload your payroll reports, convert them into the ATO’s required format and submit them on your behalf.
- If you use spreadsheets or pen and paper, you’ll need to find a service to convert the data into a compliant digital report format and submit it on your behalf.
Despite the 30 September deadline, the ATO is still waiting on 49% of small employers to start sending wage information via an approved Single Touch Payroll (STP) solution, according to the Sydney Morning Herald1.
If you are an employer with 19 or fewer employees, and have not met this compliance requirement, we can assist you via the Vision Super clearing house.
If your payroll software provider offers ATO-complaint reports only but doesn’t submit it on your behalf, Vision Super can help you through providing access to Westpac’s STP solution through a clearing house.
Westpac offer a clearing house service (Quicksuper) which Vision Super offers to employers to meet their obligations under the superannuation choice framework, which has now been extended to STP Pay Event Reporting. This service incurs a fee that is charged and paid directly to Westpac.
Arranging your set-up with QuickSuper is easy by simply completing the online application. This should only take you 5 minutes once you have all the information ready.
When your application has been submitted, a Vision Super representative will review your application and contact you regarding the next steps.
Vision Super is engaging with our employers, payroll providers and the ATO to help facilitate a smooth roll out of the new requirements for our registered employers so contact us at firstname.lastname@example.org or call us on 1300 304 947 for further information about Single Touch Payroll reporting.