Single Touch Payroll (STP)

Single Touch Payroll (STP) is a new way for employers to report payroll information to the Australian Taxation Office (ATO). Below, our tax return accountants take a look at what STP is and the benefits it provides.

What Is It?

With STP, employers report employee payroll information to the ATO each time they pay them through STP-enabled software. Payroll information includes:

• Salaries and wages
• Pay as you go (PAYG) withholding
• Superannuation

STP was introduced in July 2018 for employers with 20 or more employees, and was expanded to all employers from July 2020.

STP has a number of benefits for employers, employees and the ATO.

For employers, STP can:

• Reduce compliance costs
• Improve cash flow
• Provide better data for decision-making

For employees, STP can:

• Provide more accurate and timely information about their pay
• Make it easier to claim tax refunds
• Improve access to government services

For the ATO, STP can:

• Improve the accuracy of tax collection
• Reduce the number of errors in tax returns
• Improve compliance with tax laws

Overall, STP is a positive reform for the Australian economy. It’s making it easier for employers to do their taxes, giving employees more control over their pay and improving the accuracy of tax collection.

At AIM S Australia, we have a dynamic team of highly qualified and committed bookkeepers and tax accountants in Melbourne who can assist with everything from individual tax preparation services through to GST management.

We have expertise in preparing individual tax returns, sole trader tax returns, partnership tax returns, trust tax returns, company tax returns, crypto tax returns, expat tax returns, non-resident tax returns, overdue tax returns, foreign resident tax returns and investment property tax returns. We can also help with payroll solutions, late tax filing, capital gains, company formation, business setup and BAS. Contact us today to learn more.