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‰Û÷Single Touch Payroll‰Ûª Update

The government has announced changes to employer reporting of Pay As You Go (PAYG) withholding obligations and superannuation contributions.

On 21 December 2015, it announced the timeline for the phase in of Single Touch Payroll (STP) which changes the way employers report PAYG withholding obligations and superannuation contributions. Under STP, the reporting of PAYG withholdings to the ATO will take place automatically through SBR software. Similarly, under the new system, reporting of superannuation contributions will also be automatically sent to the ATO when payments are made to super funds.

It will be compulsory to report information about PAYG withholding and superannuation guarantee to the ATO when they are paid by the employer. Employers will also have the option to pay their PAYG withholding at the same time they pay their staff however this will not be compulsory. Current payment requirements will still apply.

To complement this new facility the government is also introducing streamlined processes for individuals commencing employment. Individuals will have the option of completing their Tax File Number (TFN) declaration and Superannuation Standard Choice forms using myGov or through their employer’s business management software.

The STP system will now be phased in from 2017/18 onwards.

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