STP and what it means for you

STP is Single Touch Payroll, an expression that’s been thrown around a lot since the 1st of July 2019. And by now, almost every businesses with employees should be opted in.

What is STP?

Single Touch Payroll is a new ATO system. It requires submitting your pay run information to the ATO each pay period. The information collected includes wages, PAYG withholding and Superannuation obligations.

Will this change the way payroll is run?

The short answer is no, not at all. Once setup, your payroll can still be run as it always was, each week, fortnight, month etc. The difference is there will be an extra step in the process, asking you to file or submit your pay run, that’s all.

What does that mean going forward?

While there will be very few noticeable differences in the immediate future, there will be some going forward.

The biggest change will be at the end of each financial year. There will no longer be payment summaries, STP data sent throughout the year will need to be finalised. That finalisation will be submitted to the ATO, letting them know that they have all the relevant information for the year.

 

 

 

 

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