Single Touch Payroll: what employees need to know
Single Touch Payroll (STP) – the direct reporting of salary and wages, PAYG withholding and superannuation contribution information to the ATO – comes into effect from 1 July 2018.
While the Government and ATO are promoting STP as a way to improve the efficiency of payroll processes and meeting reporting obligations (i.e. cutting down on duplication of work, etc), there is also a clear benefit to the ATO and Government in implementing this system.
One advantage is that the ATO will have early warning of businesses that are finding it difficult or simply failing to meet their PAYG withholding and superannuation guarantee obligations. This should have a flow-on benefit to employees who might otherwise miss out on benefits to which they are entitled.
If you are registered with myGov and your employer reports using STP, you will be able to see your year-to-date tax and super information online.
If a business utilises STP, when a new employee joins they have the option to electronically complete a pre-filled Tax file number declaration and Superannuation standard choice form online instead of completing the form for the employer to lodge with the ATO.