Single touch payroll (STP) reporting has changed the way businesses report salary and wages, PAYG withholding and superannuation contribution information to the ATO. For the 2018-19 financial year, only businesses with 20 or more employees were required to use STP. From 1 July 2019, all businesses will need to use STP although there is some leniency for micro businesses struggling with implementation.
STP means that employers will no longer issue Payment Summaries, instead a finalisation declaration will generally need to be made by 14 July (the deadline is 31 July 2019 for businesses using single touch payroll for the first time in 2018-19).
If your employer has used STP in 2018-19, you can access your Income Statement from myGov. Through your myGov account, you will be able to see your year to date tax and superannuation information within a few days of your employer paying you.
Employers need to consider;
- Auto Super batches must be approved no later than 20 June 2019 to ensure they are processed in time to get the deduction
- Pay runs are to be processed in the period of the pay date not the end of the pay period
- e.g if pay period ends 28/06 but pay date is 01/07 it will be processed in the next financial year - you need to edit the payment date in the pay run to bring into the current financial year.
- Single touch payroll has a deadline of 14th June 2019
For a complete EOFY payroll checklist, download Xero’s checklist here.