For those who know just how demanding it can be dealing with multiple government agencies and their online portals, the Single Touch Payroll (STP) reporting platform has been earmarked for an expansion that will streamline reporting requirements. The aim is to alleviate some of the burden that business owners and administrators face on a regular basis. A mandatory start date of 1st January 2022 has been confirmed, with system upgrades coming in to effect before the end of 2021.
- A streamlined reporting requirement for employers which includes key information additions to be transmitted to the ATO – the STP guidelines can be found here
- Tax File Number (TFN) declarations
- Reporting this information through your STP report will mean you will no longer need to manually send employee TFN declarations to the ATO
- This also gives the ATO real-time visibility of PAYG withholdings, enabling them to notify your employee if they gave you incorrect information which may lead to them getting a tax bill at the end of the financial year
- An employee’s work basis will be reported to the ATO e.g. full time, part time, casual
- Cessation/Termination type – a reason for separation will need to be included in the STP report e.g., voluntary, redundancy, due to illness. This will reduce the need to provide employees with separation certificates.
- Child support deductions and garnishees will be reported
- Dis-aggregation of gross earnings – Itemising of employee pay components e.g. bonuses & commissions, directors fees, paid leave, salary sacrifice, overtime, allowances etc.
- Employee’s salary sacrifice contributions will be included in the STP report. This is in line with the 1st January 2020 directive, where salary sacrifice contributions can no longer be used to reduce ordinary time earnings or count towards minimum superannuation obligations.
When your STP-enabled software solution is ready, they will let you know the steps you need to follow to upgrade your software, ensuring your business is up to date and compliant with requirements.
At Bespoke Payroll, we stand by our commitment to deliver cost effective, compliant and streamlined HR & Payroll functions for all business sizes. From basic implementations, through to fully managed and integrated systems, we’ve got you covered.
Don’t hesitate to reach out to one of our team to see how we can save you money through a solution tailored specific to your business.