Single Touch Payroll Changes 1st July 2021 Update

June 9, 2021 | Robyn Bull

What does this mean for you:-

Single Touch Payroll (STP), is an Australian Government initiative to reduce employers’ reporting burdens to government agencies.

With STP, you report employees’ payroll information to us each time you pay them through STP-enabled software.

Payroll information includes:

STP started on 1 July 2018 and is a mandatory obligation.

The ATO have provided several concessions depending on business, industry, or employer types. These will end on

1 July 2021 and if you have a current concession you will need to be reporting each pay day through STP by this date.

We have been provided with a list of clients from the ATO that are currently registered for PAYG Withholding that need to start reporting STP (Single Touch Payroll) to the ATO by the 1st July 2021.

You may have received a letter from the ATO labelled “You must start reporting through STP – Penalties may apply”.

To be STP compliant you must be using a payroll software that you can provide the ATO with a software ID number.

There are many options available for just payroll, or you may want to move all your bookkeeping needs to a software that does more than payroll.

Xero offer a payroll only plan of just $10 per month, no fuss and simple to use.

The ATO have a list of providers, please click on the link below.

https://softwaredevelopers.ato.gov.au/no-cost-and-low-cost-solutions-single-touch-payroll

We are here to help you with setting you up, training on payroll, or just to talk you through what is required.

Please do not hesitate in contacting us.

LBW Advisory Team