Single Touch Payroll (STP)

Community Manager Suja_P
5,388 Posts
Community Manager
Australia

Single Touch Payroll (STP)

Hi all,

 

Most of you who deal with payroll would be aware that Single Touch Payroll is coming in 2018. It will bring with it reporting changes and opportunities to gain efficiencies, especially around the end of financial year time crunch.

 

Single Touch Payroll (STP) is a government initiative to simplify business-reporting obligations. Businesses will need to electronically report their employees' payroll information to the ATO at the time of paying their employees.

 

STP will be mandatory from 1 July 2018 for businesses with 20 or more employees. 

 

For those employers that have 19 or less employees there is no mandatory requirement to use an STP solution, however, solutions will be designed to allow these employers to take up an STP solution on a voluntary basis.

 

MYOB is working closely with the ATO to ensure our products keep all of our clients compliant. 

 

We have set up a dedicated web page – Single Touch Payroll with FAQs on the topic. All relevant updates relating to your respective MYOB products will be posted on this page.

 

Here are some other links on the topic that you may find informative:

 

Should you have any queries on this topic please feel free to post them as replies to this post. 


Kind regards,

Suja Pillai
Social Support and Community Manager
MYOB Australia Pty Ltd

1 REPLY
Ultimate Partner Seattle
1,375 Posts
Ultimate Partner
Australia

Re: Single Touch Payroll (STP)

@Suja_P

 

Suja,

 

I had two chats with Sally Higgs from MYOB who gave the talk on Single Touch Payroll at Partner Connect in Sydney on 04 September 2017. There was a mismatch of ideas.

 

The Press Release from The Hon Kelly O'Dwyer MP Minister for Revenue and Financial Services on 29 August 2017 states Single Touch Payroll (STP) will be compulsory for smaller employers from 01 July 2019.

 

Ms O'Dwyer states in her press release "This will reduce the regulatory burden on business and transform compliance by aligning payroll functions with regular reporting of taxation and superannuation obligations".

 

The Government had the opportunity of regulating monthly payment of Super Guarantee (SG) but I understand that quarterly payments still apply.

 

How can there be alignment when the government wants same day reporting of payroll and SG is paid quarterly?

 

Many of my clients lodge a monthly IAS and pay PAYG - W monthly within 21 days of the end of the month.

I understand the cycle of paying PAYG - W will not change.

Once again, how can there be alignment when the government wants same day payroll reporting and PAYG - W is paid monthly.

 

I am at a total loss where a statement is made that STP will reduce regulatory burden on businesses.

The non-issuance of payment summaries is a good idea and reduces paperwork but the extra burden of reporting to the ATO on the day of a pay run may well be extremely difficult for a small business.

 

Larger businesses with full time accounting staff or a business where a BAS Agent attends weekly to prepare payroll will conceivably not be impacted.

 

There are many businesses with less than 10 staff where monthly management reporting and monthly reporting/payment of PAYG-W has served all concerned very well.

 

A reasonable Tax/BAS Agent has much experience in the substandard nature of the ATO computer systems.

Even if the ATO had a high standard of computer systems, what is the purpose of same day payroll reporting if the ATO has to wait until a payment date has passed before any collection of unpaid PAYG - W can be undertaken and has to wait until 28 days after the end of a quarter before any collection of unpaid Super can be undertaken.

 

The solutions available from MYOB to solve the unnecessary requirement of small business to report payroll to the ATO on the day of payment have not been helpful. One suggestion was to have the Director of a small business process the payroll and report to the ATO - this method is fraught with danger 

I spoke with Quickbooks about STP and they said they would work with BAS Agents to automate payroll so as to provide a solution to their clients and reduce the administrative burden of STP.

 

The basis of SuperStream was beneficial and there have been ongoing time savings to small business.

The Government in the above Press Release advises that super funds will report contributions at least monthly - this is somewhat useless if the payment cycle of SG is quarterly.

 

One wonders if software companies are supporting STP as a means of selling more software.

I understand that smaller industry bodies have advised the government of the shortfalls of same day payroll reporting - one can only hope the Government listens.

 

Duncan Smith

Duncan Smith
Business Advice + Tax
www.businessadviceplustax.com.au
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
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