An update on Single Touch Payroll (STP) System
The ATO (Australian Tax Office) is writing to employers who started reporting through Single Touch Payroll (STP)before 1 July 2018, providing them with information about how their employees’ payment summary for 2017 / 18 may change with STP. The notable information are as follow:
- They are not required to provide their employees with payment summaries for the information they report through STP (although they may choose to provide payment summaries for the first year of STP reporting)
- ‘Income statements’ will replace payment summaries
- Employees’ income statement are available through pre-filling and myGov
- The income statement has three categories: ‘Tax ready’, ‘Not tax ready’ and ‘Year-to-date’. Only ‘tax ready’ income statements are complete and will be available through pre-filling.
- Income statements may not be tax ready until 14 August this year. Employers have until this date to finalise their STP data
ATO has also recognised that some employers may have not been ready to start STP reporting from 1 July 2018, and these employers (or their tax agent) are given an option to apply for a deferral. An example of the employers’ which can apply for a deferral (or even an exemptions) are those that live in an area where there is no internet connection, or where connection or service is intermittent or unstable.
A flashback to the when STP was first brought up in the month of May. ATO has described the system’s framework and the condition to which employees are affected. To read more about the details on which category of employers are qualified for STP reporting, visit here.
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