These employers are now reporting their employees’ salaries and wages, pay as you go withholding and super information to the ATO from their payroll solution each time they pay their employees.
ATO Assistant Commissioner John Shepherd said while it’s not mandatory for small employers to report through STP they can choose to get on board when their software is ready.
'If you use online or cloud-based payroll software you may be able to start reporting now by updating your software to one that is STP-ready. You should talk to your software provider about when your product will be available,' Mr Shepherd said.
Mr Shepherd also reassured smaller employers that a number of different STP reporting options will be made available to them, including low cost and simple STP reporting solutions.
'The ATO works closely with small businesses and we are aware of the many competing pressures they face. We will work with all stakeholders on alternative options for those businesses that do not use payroll software,' he said.
More than 97 percent of the 2.2 million actively trading businesses* in Australia are small employers making them an important part of the broader Australian economy.
Importantly, as a result of businesses transitioning to STP reporting, the ATO now has access to employee superannuation data allowing it to better protect employee entitlements. Employees can also see their year-to-date tax and superannuation information online in real-time via MyGov.
'STP is a win, win for employers and employees because it streamlines the process for employers and provides greater transparency around super entitlements for employees'.
'Tens of thousands of employers across Australia have already taken the next step in payroll reporting and adopted STP and we’re encouraging small employers to follow this lead when their product is available,' said Mr Shepherd.
STP is a big change for employers so the ATO is focused on educating and supporting tax professionals and employers to make the transition easier.
- Single Touch Payroll – for information, resources, news and detailed guidelines.