Blog & Resources

What is Single Touch Payroll?


Single Touch Payroll (STP) changes the way businesses communicate their employee information with the Australian Taxation Office (ATO).

Historically employers have reported their employee transactions once a year, now, by using payroll software which most accounting packages like Xero have,  employers are able to send the details of their employee transactions to the ATO each time a payroll run is completed. 

For employers with 20 or more employees STP was mandatory from 1 July 2018. For Employers with 19 or less employees it will be mandatory from 1 July 2019.

As a result of STP there will be no need to lodge Pay As You Go (PAYG) Payment Summaries or PAYG Payment Summary Statements as this information will be provided to the ATO through the year.

Micro Employers with 1 to 4 employees will have additional options, one being the reporting of employee transaction through their accountants / tax agents on a quarterly basis, not every time they pay their employees.

Xero is 100% compliant with the new STP requirements.  We recommend that you are ready to comply with these new laws prior to the end of the financial year.

If you would like to discuss further please contact us:
 McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
 Phone +61 3 9428 1062

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