Let's talk about Single Touch Payroll... And its Benefits..!?


Single Touch Payroll has been in the pipeline for a few years now but it is recently that the ATO has made it mandatory for the SMEs to adopt. Usually, businesses report the payroll only once a year to the ATO, whereas now they would be required to do so after each pay day in a digital format while using a specific arrangement called Standard Business Reporting (SBR). This move by ATO signifies to make the Australian tax system smarter, more automated and more efficient.

The Benefits to the Employer:

For employers like you, once the changes are applied and understood, there are several advantages under the new system:

  • Once the STP is fully online, you will no longer need to provide annual pay (PAYG) summaries to your employees. You will not have to prepare the annual reconciliation to the ATO. This will reduce your administration and compliance overhead.
  • The STP data that you provide will allow the ATO to pre-fill the BAS PAYG amount maintaining that element accurately from your behalf.
  • You no longer would need to provide a payment summary to your employees. The ATO will make it available for them at myGov, so they can access it easily anytime anywhere. This increased visibility will give your employees more insight of their own for their tax positions.

However, make sure there are no mistakes while providing the information through STP as it would be difficult to change. Adjustments could be done at the end of the year but it will be very easy for the ATO to track them now.

Be aware that the Payroll is linked to Payroll tax which is also linked to Worker’s Compensation insurance. Hence, be prepared for Audits from any of these departments as they talk to one another automatically.

The Benefits to the Employee:

For employees like you, in terms of visibility of pay, tax and super, life just got easier.

  • The ATO will update the total year to date salary (YTD) of an employee on its myGov portal each and every time of their pay. It will also show the PAYG withholding amounts and super guarantee contributions as they accumulate. This means the employees will have more access to their pay and taxes in a timelier manner, plus they can check if their Super is being paid correctly.
  • New employees can complete TFN Declarations and Super choice nominations online for a more streamlined digital process.
  • With Single Touch Payroll being adopted, the ATO will be able to pre-fill BAS for employers. This would reduce the potential of human error and double handling.
  • The ATO will automatically track all the figures taken from the STP submissions and make them available on their myGov portal. This means the employees can access their payment information directly, hence, they won’t have to generate and distribute payment summaries saving their time and money at a crucial time- end of financial year.

However, make sure your pay is correct every time. Check with your Pay Advisor.


Oz Migration Blogs

Let's talk about Single Touch Payroll... And its Benefits..!?


Single Touch Payroll has been in the pipeline for a few years now but it is recently that the ATO has made it mandatory for the SMEs to adopt. Usually, businesses report the payroll only once a year to the ATO, whereas now they would be required to do so after each pay day in a digital format while using a specific arrangement called Standard Business Reporting (SBR). This move by ATO signifies to make the Australian tax system smarter, more automated and more efficient.

The Benefits to the Employer:

For employers like you, once the changes are applied and understood, there are several advantages under the new system:

  • Once the STP is fully online, you will no longer need to provide annual pay (PAYG) summaries to your employees. You will not have to prepare the annual reconciliation to the ATO. This will reduce your administration and compliance overhead.
  • The STP data that you provide will allow the ATO to pre-fill the BAS PAYG amount maintaining that element accurately from your behalf.
  • You no longer would need to provide a payment summary to your employees. The ATO will make it available for them at myGov, so they can access it easily anytime anywhere. This increased visibility will give your employees more insight of their own for their tax positions.

However, make sure there are no mistakes while providing the information through STP as it would be difficult to change. Adjustments could be done at the end of the year but it will be very easy for the ATO to track them now.

Be aware that the Payroll is linked to Payroll tax which is also linked to Worker’s Compensation insurance. Hence, be prepared for Audits from any of these departments as they talk to one another automatically.

The Benefits to the Employee:

For employees like you, in terms of visibility of pay, tax and super, life just got easier.

  • The ATO will update the total year to date salary (YTD) of an employee on its myGov portal each and every time of their pay. It will also show the PAYG withholding amounts and super guarantee contributions as they accumulate. This means the employees will have more access to their pay and taxes in a timelier manner, plus they can check if their Super is being paid correctly.
  • New employees can complete TFN Declarations and Super choice nominations online for a more streamlined digital process.
  • With Single Touch Payroll being adopted, the ATO will be able to pre-fill BAS for employers. This would reduce the potential of human error and double handling.
  • The ATO will automatically track all the figures taken from the STP submissions and make them available on their myGov portal. This means the employees can access their payment information directly, hence, they won’t have to generate and distribute payment summaries saving their time and money at a crucial time- end of financial year.

However, make sure your pay is correct every time. Check with your Pay Advisor.