close
This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

The Benefits of Single Touch Payroll

downloadDownload printPrint

Pssst… we can write an original essay just for you.

Any subject. Any type of essay.

We’ll even meet a 3-hour deadline.

Get your price

121 writers online

blank-ico
Download PDF

STP is a reporting change introduced by the Australian Taxation Office (ATO) to streamline the way employers report some tax and superannuation information to the ATO. It means employers will report salaries and wages, pay as you go (PAYG) withholding and superannuation information to the ATO directly from their payroll solution at the same time they pay their employees.

What Are the Benefits

Some of the benefits to employers as a result of this streamlining process include the ATO being able to pre-fill the BAS (W1 and W2) for employers, eliminating potential errors and double handling. The need to generate and distribute payment summaries may be eliminated for employers as this information will be made available online via myGov.

The ATO may allow employers to collect tax file declaration and super choice information online via myGov when onboarding new employees. STP certainly has some administrative benefits, however, there are a few things that need to be in place before the 1 July 2018 compulsory switch takes place.

Who Does It Apply To

For employers with 20 or more employees, STP reporting starts from 1 July 2018. Employers with fewer employees can still report voluntarily, although this is not a requirement. The Australian Government will expand STP to include employers with 19 or less employees from 1 July 2019, subject to legislation being passed.

What to Do Before 1 July 2018

Employers need to do a headcount on 1 April 2018 to determine their requirement to report through STP; organisations of 20 or more employees will be required to start transmitting from July 2018. If you have 20 or more employees on 1 April 2018 you will be a “substantial employer”, and will need to report through STP from 1 July 2018. Once you are a substantial employer you will be required to continue reporting through STP even if your employee numbers drop below 20.

You need to include the following employees in your headcount:

  • full-time employees
  • part-time employees
  • casual employees who are on your payroll on 1 April and worked any time during March
  • employees based overseas
  • any employee absent or on leave (paid or unpaid)
  • seasonal employees (staff who are engaged short term to meet a regular peak workload)

Do not include:

  • any employees who ceased work before 1 April
  • casual employees who did not work in March
  • independent contractors
  • staff provided by a third-party labour hire organisation
  • company directors
  • office holders
  • religious practitioners

The ATO may defer the date you are required to start your STP reporting if:

  • your payroll solution will not be ready for STP reporting by 1 July 2018
  • you have entered administration or liquidation
  • you have been impacted by a natural disaster
  • you are affected by a circumstance outside your control

If you won’t be ready to start reporting from 1 July 2018, you will need to request a deferral before that date. Your registered tax agent can request a deferral on your behalf.

Information for Employees

If your employer reports through STP, you will be able to see more up-to-date tax and super information in ATO Online Services through myGov.

infoRemember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

100% plagiarism-free

Sources and citations are provided

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

The Benefits of Single Touch Payroll. (2019, January 15). GradesFixer. Retrieved June 16, 2021, from https://gradesfixer.com/free-essay-examples/the-benefits-of-single-touch-payroll/
“The Benefits of Single Touch Payroll.” GradesFixer, 15 Jan. 2019, gradesfixer.com/free-essay-examples/the-benefits-of-single-touch-payroll/
The Benefits of Single Touch Payroll. [online]. Available at: <https://gradesfixer.com/free-essay-examples/the-benefits-of-single-touch-payroll/> [Accessed 16 Jun. 2021].
The Benefits of Single Touch Payroll [Internet]. GradesFixer. 2019 Jan 15 [cited 2021 Jun 16]. Available from: https://gradesfixer.com/free-essay-examples/the-benefits-of-single-touch-payroll/
copy to clipboard
close

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

    By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.

    close

    Attention! This essay is not unique. You can get a 100% Plagiarism-FREE one in 30 sec

    Receive a 100% plagiarism-free essay on your email just for $4.99
    get unique paper
    *Public papers are open and may contain not unique content
    download public sample
    close

    Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

    close

    Thanks!

    Your essay sample has been sent.

    Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

    thanks-icon Order now
    boy

    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Having trouble finding the perfect essay? We’ve got you covered. Hire a writer
    exit-popup-close

    Haven't found the right essay?

    Get an expert to write you the one you need!

    exit-popup-print

    Professional writers and researchers

    exit-popup-quotes

    Sources and citation are provided

    exit-popup-clock

    3 hour delivery

    exit-popup-persone