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What and why is Single Touch Payroll Reporting?

Single Touch Payroll is a reporting change for employers. It means employers will report payments such as salaries and wages, pay as you go withholding (PAYGW) and super information to us directly from their payroll solution at the same time they pay their employees. For employers with 20 or more employees, Single Touch Payroll reporting starts from 1 July 2018.

The Australian Government has announced it will expand Single Touch Payroll to include employers with 19 or less employees from 1 July 2019. However, they can voluntarily report under STPR before this date.

Do I have to use Single Touch Payroll Reporting?

As stated, Single Touch Payroll Reporting will have to be used in cases where there are 20 or more employees. A headcount needs to be taken on 1 April, 2018, to find out if the employer is classed as a “substantial employer”.

The following employees need to be included within the headcount:

  • Full-time employees
  • Part-time employees
  • Casual employees who are on your payroll on 1 April and worked any time during March
  • Employees based overseas
  • Any employee absent or on leave (paid or unpaid)
  • Seasonal employees (staff who are engaged short term to meet a regular peak workload. The example the ATO gives is harvest workers.

When performing the headcount, the following are not included:

  • Any employees who ceased work before 1 April
  • Casual employees who did not work in March
  • Independent contractors
  • Staff provided by a third-party labour hire organisation
  • Company directors
  • Office holders
  • Religious practitioners

How does Single Touch Payroll affect other reporting requirements?

An employer that has met its Single Touch Payroll reporting obligations for an income year will not need to comply with the following obligations:

  • Notification of withholding amounts
  • Annual payment summaries
  • Payment summaries for payments for termination of employment
  • Annual reports to the Commissioner; and
  • Part-year payment summaries.

Latest News:

  • 12-08-2018
    Single Touch Payroll Reporting