Single Touch Payroll (STP)
Wagemaster is Single Touch Payroll ready, are you?
What is Single Touch Payroll?
The Australian government mandated a new reporting change to ensure employers report wages and super payments electronically through the ATO directly from their payroll software at the same time they pay their employees.
As a result, businesses will no longer be required to complete payment summaries at the end of the financial year as it will already have been done. You will report your employee’s payroll information directly to the ATO from Wagemaster.
What does this mean for me?
For businesses with 20 or more employees, it is mandatory to be STP compliant by 1st July 2018. The first step is to conduct a headcount of your employees on 1st April 2018. You don't need to send this information to the ATO. This count is for you to determine if you need to start STP reporting from 1st July 2018.
Employers with 19 or less employees don't need to comply with STP until 1 July 2019. However, Wagemaster/Wage Easy is designed to help keep them ahead of the game. Any employer with 19 or less employees can start an STP solution in the next release.
Wagemaster is one of the first five products the ATO have white-listed as compliant.
What do I need to do?
It’s important to note that you need to have done a “headcount” on April 1, 2018, to determine if you have 20 or more employees.
For more information regarding who to include in the headcount, check our FAQ section below.
In addition to the employee headcount on 1st April, you will need to update your current Wagemaster to the next version that will be Single Touch Payroll enabled. Wagemaster’s updated version delivers an easy-to-use solution to make the transition as smooth as possible.
Release coming soon!
The ATO have created a Single Touch Payroll Checklist to help you prepare.
Click here to download.
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+ Who should be included in the headcount
- full-time employees
- part-time employees
- casual employees and seasonal workers who are on your payroll on 1 April and worked any time during March. There are exemptions to counting seasonal workers who were employed for a short-time only.
- employees based overseas
- any employee absent or on leave (paid or unpaid).
+ Who should NOT be included in the headcount
- 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 are seasonal workers included in the headcount
Employing seasonal workers may increase the number of employees on your payroll to 20 or more on 1 April 2018. You will be exempt from reporting under STP for the 2018 financial year if both of the following circumstances apply:
- you had fewer than 20 employees for at least 10 months out of the preceding 12 months (that is, from 1 June 2017 to 1 April 2018)
- you reasonably expect to have fewer than 20 employees for at least 10 months out of the 12 months immediately after 1 April 2018 (that is, from 1 April 2018 to 31 March 2019). If you choose to use the exemption for seasonal workers, you don't need to tell the ATO. However, you should keep a record of your decision.
+ Will I still need to submit a BAS?
Yes – you’ll still need to submit a BAS, but the W1 and W2 values will be pre-filled
+ Will I be able to adjust the pre-filled values on my BAS?
+ Will I still need to submit an annual payment summary report?
If you use Single Touch Payroll reporting, you may not need to submit a payment summary report.
+ Will I still need to generate payment summaries for my employees?
If you use STP reporting, you may not need to submit a payment summary report. The ATO will make that information available to employees through myGov.
+ Can I make PAYG or super payments through Single Touch Payroll?
No, Single Touch Payroll is a reporting solution only. You will still need to make PAYG and super payments separately. If you use Wagemaster/WageEasy, PAYG can be processed through an ABA file and super payments can be automated.
+ Can I use single touch payroll even if I’m not required to?
Yes – if you’re an employer that has 19 employees or under and you want to use Single Touch Payroll, then you should be able to do so.
+ Can a bureau/payroll provider/registered BAS agent submit Single Touch Payroll data on behalf of a client?
Yes, bureau payroll providers and BAS agents will be able to lodge STP data on behalf of clients