STP Simplified: Everything You Need to Know
STP Simplified: Everything You Need to Know
Since its introduction by the Australian Taxation Office (ATO), Single Touch Payroll (STP) has revolutionised how employers report their payroll information. Implemented progressively from 1 July 2018 for larger employers and extended to all businesses by 1 July 2019, STP aims to streamline the reporting process, enhance accuracy, and ensure compliance with tax obligations.
Understanding STP: What Employers Need to Know
STP requires employers to report payments such as salaries, wages, PAYG withholding, and superannuation contributions directly to the ATO each time payroll is processed. This real-time reporting replaces the previous practice of annual payment summaries (or group certificates), making compliance more efficient and reducing the administrative burden on businesses.
Key Changes Introduced by STP
Before STP, businesses finalised their payroll records annually and provided payment summaries to both the ATO and employees. With STP-enabled software, employers now report this data with each pay run, eliminating the need for separate end-of-year summaries. Employees access their income statements directly through myGov, simplifying the process of preparing and filing tax returns.
Reporting Requirements and Options
Employers can fulfil STP requirements using STP-enabled payroll or accounting software, or through registered agents or payroll service providers. This flexibility accommodates different business needs, ensuring seamless integration with existing payroll processes.
Special Considerations and Exemptions
Small businesses with 19 or fewer employees, as well as micro-employers with up to 4 employees, can benefit from low-cost STP solutions or apply for exemptions based on specific circumstances such as limited digital connectivity.
How Aero Accounting Group Can Help
At Aero Accounting Group, we understand the complexities of STP and offer tailored solutions to ensure your business meets its reporting obligations efficiently. Whether you’re transitioning to STP-enabled software, seeking guidance on compliance, or exploring exemption options, our experienced team is here to assist you every step of the way.
Get STP-Ready Today
Ensure your business is STP-compliant and streamline your payroll reporting with Aero Accounting Group. Contact us to learn more about how we can simplify your payroll processes and maximise your compliance efforts under STP.
Need help?
Not sure if your current accountant is a good long-term fit? Contact us at Aero Accounting Group today and we’ll help you minimise your taxes and maximise your profits