Single Touch Payroll (STP) is here. It had a "soft" or voluntary start on 1 July 2017. From that date, employers may choose to report under STP. For those who qualify (ie employers with 20 or more employees), STP will be mandatory from 1 July 2018.
For employers with 19 or fewer employees on 1 April 2018, their reporting obligations will not change. They will not need to start reporting through STP from 1 July 2018, but may choose to start using a payroll solution to take advantage of the benefits of STP reporting.
STP will automatically provide payroll and superannuation information to the ATO at the time it is created. Reporting through STP means that when employers complete their normal payroll process, their employees' PAYG withholding and super guarantee information will be sent to the ATO directly from their payroll solution. If an employer reports to the ATO through STP, its employees will be able to see more of their tax and super information online through myGov.
Entities that report under STP are able to obtain relief from obligations to provide payment summaries to individuals and a payment summary annual report to the Commissioner.
The ATO says it is working with payroll solution providers to ensure their products are ready for STP reporting.