Single Touch Payroll (STP) is a new way of reporting tax and superannuation information to the Australian Taxation Office.
Every employer will need to report employees' payroll information, such as salaries and wages, pay as you go (PAYG) withholding and super information to ATO each time they pay them.
So what does that mean for your business?
- you will run your payroll, pay your employees as normal, and give them a payslip your pay cycle does not need to change
- your STP-enabled payroll software will send a report to the ATO which includes the information such as salaries and wages, pay as you go (PAYG) withholding and super information
- Payment summaries will no longer be given by employers to employees, instead, all information will be available on myGov account, or available to access by your tax agent
- You will no longer need to provide ATO with a payment summary annual report (PSAR) at the end of the financial year for the payments you report through STP.
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