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Single Touch Payroll in Australia

By Agile Accounting Plus, a Certified and Registered Accounting Company in Australia in 2021

What is a Single Touch Payroll?

The Single Touch Payroll or STP as it is known commonly is an initiative taken by the Government of Australia to reduce the reporting burden on the shoulders of employers.

Using this service will not hinder any of your options and you will be able to smoothly run your payroll, pay the employees as usual and provide them with a pay slip.ff support data

STP will have no effect on your pay cycle and you can continue to pay your employees according to your prior agreement. Using the payroll software you will provide information about an employee’s

• PAYG (pay as you go withholding)
• Wages and salaries
• Information about superannuation

STP is obligatory for every employer. Even if you have fewer than 19 employees you are required to file it.

Get in touch with us to start your STP here.

STP for intermediaries

Intermediaries like accountants and tax agents registered as payroll service providers will need to use the STP-enabled software to report to their clients.

STP for Employees

When an employer reports to the Government through the STP or single touch payroll, they send tax and superannuation information of their employees. hack zombie tsunamiEmployees are still paid in the same way. However, some new employees may have the option to fill out some employee commencement forms online.

Single Touch Payroll phase 2:

In the 2022-23 budget the Government announced that it would extend data collected through STP. This extension is called the STP phase 2.

Single Touch Payroll phase 2 will make reporting financial information about employees to multiple Governmental departments easier.

Find out more about how to apply for STP here. 

Benefits of STP phase 2:

The benefits of STP phase 2 are many. They include:

•  Elimination of duplication of information that employers give to the Government. This factor will also reduce extra interactions for

1. 1. Providing a reason for why an employee ceased employment. This will reduce the need for separation certificates as well.
   2. No more need to report deduction amounts and child garnishee through the separate manual remittance process.

• There won’t be any more need to send withholding declarations and tax file numbers to the Australian Taxation Office. Instead, you can lodge these in your STP support under the Employment Conditions Sector.

• STP phase 2 will allow components of gross income to be defined better.

1. 1. Through this process, employers are easily able to understand their dues and obligations.
   2. It will help employers understand their earnings and will help them in their interactions with Services Australia.
   3. It ensures constant reporting across different income types.

• STP phase 2 will make reporting income streams and employee payments easier by type of income. This includes,

1. 1. Wages and salaries
   2. Employment income from foreign countries
   3. Working holiday-maker
   4. Closely-held payees