Single Touch Payroll (STP) Reporting

Single Touch Payroll (STP) is a new set of payroll reporting obligations that came into effect as of 1 July 2018 and that apply to employers with twenty or more employees.

Under STP a pay company must report payments made to payees directly to the ATO from their payroll software on or before the payment date. In the context of FastTrack360, that means the following:

• You must report payments you have made to, and tax you have withheld from payees, in each pay batch you process. This must be reported on or before the payment date of the pay batch.

• Notify the ATO when you have made final payments to payees. A final payment indicates that you do not expect to be making further payments to a payee in a financial year, because the financial year has ended, or you do not expect to be making any further payments in the future because the payee's employment has been terminated. 

STP reporting removes a pay company’s legal obligation to do the following:

• issue payment summaries to payees

• submit the Payment Summary Annual Report (PSAR) to the ATO after the conclusion of a financial year

• submit Tax File Number (TFN) Declaration reports to the ATO when new payees commence employment.

See also: