Single Touch Payroll (STP)
What is Single Touch Payroll?
Single Touch Payroll is an ATO compliance initiative created by the Australian government 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 Your Farm Business?
For businesses with 20 or more employees, it is mandatory to be STP compliant by 1st July 2018. Employers with 19 or less employees need to comply with STP by 1 July 2019. The Agrimaster-Plus plan is designed to provide you with an STP solution.
What Do You Need To Do To?
As a farmer you can submit each STP report yourself or pay your accountant / BAS agent to do it for you until 2020. No matter what option you choose, you need an STP compliant software to submit the report to the ATO. A STP compliant software means that the software is ATO approved and has a secure connection to submit the confidential payroll reports.
As each farm business is different i.e. number of full time/casual employees, pay cycle frequency, award types etc., we advise you to do your research to see what STP software solution is suitable for you. Below are a range of resources to help you get started on your STP journey.
Book A Call With The Sales Team
Single Touch Payroll Resources
We recommend all customers to watch the STP webinar series.
Join John Shepherd, the ATO Program Lead of STP and the Directors of Agrimaster, David and Natalie as they discuss Single Touch Payroll, how it effects farm businesses and advice on how to transition as a small business.
The free eBook has everything you need to know about Single Touch Payroll including a complete overview and a preparation checklist.
The Employee Toolkit will help you easily setup an employee on-boarding system that incorporates the right HR practices from the start..
The ATO have created a Single Touch Payroll Checklist to help you transition your farm business.
Agrimaster-Plus has all the benefits of agrimaster with integrated payroll - Wagemaster!
+ 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