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A business owner using Single Touch Payroll to report their PAYG and super contribution information.

Single Touch Payroll (STP)

Q: Does QuickBooks Online Payroll powered by Employment Hero support Single Touch Payroll?

Yes! QuickBooks Online payroll software has been STP compliant for many years (before most of our competitors). So, whatever your business, however many people you employ, you will be STP ready with our STP enabled software - QuickBooks Online integrated Payroll, powered by Employment Hero.

Q: Do I still need to submit a BAS?

Yes – you still need to submit a BAS, but the W1 and W2 values will be pre-filled.

Q: Can I adjust the pre-filled values on my BAS?

Yes. Manual Single Touch Payroll finalisation is possible for your BAS.

Q: Do I still need to submit an annual payment summary report?

No, you do not need to produce a payment summary annual report at the end of the financial year when you use Single Touch Payroll.

Q: Do I still need to generate payment summaries for my employees?

No. If you use single touch payroll reporting, you do not need to submit a payment summary report.

Q: Can I make PAYG or super payments through single touch payroll?

No, single touch payroll is a reporting solution only. You will still need to make PAYG and super payments separately. If you use KeyPay, PAYG withholding can be processed through an ABA file and super payments can be automated with ClickSuper.

Q: Do businesses need to worry about STP Phase 2 payroll system?

Yes. Businesses must follow the rules for STP Phase 2 or they could be fined by the ATO.

Q: What are the main changes for STP Phase 2?

Tax File Number declarations will be included in the reports.Certificates of separation for employees will no longer be needed.A Lump Sum E letter no longer needs to be sent to the employee if the employer paid off debts from previous years. This is now included in Phase 2.Child support deductions are also now included in STP data.

October 19, 20172 min read

The Australian Tax Office (ATO) has been talking about Single Touch Payroll (STP) since as early as 2014 but it has only been in effect for the past few years. Here’s what you need to know about this new payroll system.

A Single Touch Payroll Timeline about ATO updates and Quickbooks compliance

What is Single Touch Payroll?

STP is a change in the way employers will report their PAYG and super contribution information to the ATO. Employers will now be required to report PAYG and super after a “payroll event” – essentially after payroll has been processed – rather than previously reporting monthly or quarterly. In addition to PAYG, super contributions will also be required to be reported, which previously wasn’t required.

How does Single Touch Payroll benefit employers?

The main benefits for employers with this one-touch payroll system are that it will streamline the process of reporting to the ATO by being able to submit payroll information at the completion of each payroll.

By doing this the ATO will be able to pre-fill the Business Activity Statement (BAS) (W1 and W2) for employers, eliminating potential errors and double handling. Additionally, the need to generate and distribute payment summaries may be eliminated for employees as this information will be made available online via myGov.

Finally, the ATO may allow employers to collect tax file declaration and super choice information online via myGov when onboarding new employees.

When did Single Touch Payroll come into effect?

STP began on 1 July 2018, for businesses with 20 or more employees and in July 2019 for businesses with 19 or fewer employees. It is now a legal requirement for all Australian business owners for recording employees' payroll information.

What is STP Phase 2?

In the 2019-20 Budget, the government announced the expansion of Single Touch Payroll STP - to be known as STP Phase 2. STP Phase 2 reporting significantly increases the amount of data that the ATO needs to keep track of, with the idea that this new system will help make sure employees are paid correctly and that employers don't have to report information about their employees to many different government agencies.

It will also help Services Australia's customers get paid on time, sending all information to the ATO.

Frequently Asked Questions

Does QuickBooks Online Payroll powered by Employment Hero support Single Touch Payroll?

Do I still need to submit a BAS?

Can I adjust the pre-filled values on my BAS?

Do I still need to submit an annual payment summary report?

Do I still need to generate payment summaries for my employees?

Can I make PAYG or super payments through single touch payroll?

Do businesses need to worry about STP Phase 2 payroll system?

What are the main changes for STP Phase 2?

Payroll

Top 10 most asked questions from our Single Touch Payroll webinar

April 15, 2019

Payroll

What is a payroll expense? A guide to payroll expenses

November 5, 2021

All of your Single Touch Payroll questions answered

October 5, 2018

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