Single Touch Payroll

Ensure your business is compliant with the latest changes to payroll reporting and ready for the planned JobKeeper payment subsidy.

What is Single Touch Payroll?

Single Touch Payroll (STP) is  an ATO compliance regulation that requires employers to send employee payroll information including salary, wages, PAYG withholding and superannuation to the ATO at the same time as their standard pay run.

Single Touch Payroll is a significant change that will require many employers to upgrade or replace their payroll system this financial year in order to meet their payroll reporting obligations.

Transcript

Single Touch Payroll

Here is Tom. He is pretty chuffed with himself, aren’t you Tom?
He is already getting his business set up for STP.

STP or single touch payroll, is a new reporting method of sending employee payroll information to the ATO.
Information such as salaries, wages, PAYG withholdings and superannuation will be reported directly to the ATO in the standard pay run, instead of at the end of financial year.

Reporting each pay run saves time and resources for businesses at the EOFY and gives employees easy access to up to date payment information through their MyGov account.

Isn’t that right Tom.

On the 1st of April 2018, Tom is going to do a headcount of his employees.
If he has 20 or more, STP will be mandatory from 1st July 2018.
If he has 19 or less he can still use it and get a head start before it becomes mandatory on the 1st of July 2019.

Tom is counting down the hours until it starts, STP will save his business valuable time around the end of year without having to process all those employee, it’s already done making it much easier.

His employees will also benefit from access to payment information on MyGov as well as pre filled tax return forms and online commencement forms that will make starting a new job easier.

As a result of these changes, Tom needs to pick an STP ready payroll software to remain complaint. He chose to use Reckon software.

Reckon is part of the Australian Business Software Industry Association (ABSIA) who are
working collaboratively with the ATO to help shape and influence the design and
implementation of STP.

All Reckon products with Payroll functionality will be STP enabled and ATO certified
including:
• Reckon One
• Reckon Accounts Hosted
• Reckon Accounts Desktop
• Payroll Premier

For more information go to reckon.com/stp and get your business ready for the future of payroll.

Just like Tom.

When does Payday filing start? Payday filing was made mandatory for all employers from 1 April 2019. Payday filing has been voluntary from 1 April 2018, and switches to mandatory from 1 April 2019. It’s a good idea to start thinking about how you’ll make Payday filing part of your payroll processes before this becomes a requirement.

When did Single Touch Payroll start?

Phase 1:  Single Touch Payroll became mandatory on 1 July 2018 for all employers with 20 or more employees.

Phase 2: Single Touch Payroll become mandatory for ALL employers on 1 July 2019. With special rules for STP micro employers (1-4 employees) – see our micro STP solution >.

Note: Employers with only closely held employees or non-business employers, such as carers holding a Withholding Payer Number (WPN), don’t need to start reporting for them until 1 July 2021.

What’s the difference?

Traditionally employers lodged their payroll information via paper or manual submission once a year to the ATO by the 14 July deadline.

Under STP, employers send payroll information to the ATO at the same time as they pay their employees typically weekly, fortnightly or monthly via their payroll software. This means pay runs and payroll compliance are combined into one process. 

What do I need to submit? Each time you finish a pay run you need to send a report of the employee payroll information to the IRD. Your report will include the following information for each employee: Pay period, pay cycle (weekly monthly etc) and payday date The employee’s full name, IRD number and tax code The employee’s total gross earnings The amount of PAYE, including tax on scheduler payments Child support or student loan deductions if applicable KiwiSaver deductions KiwiSaver employer contributions if applicable Employer Superannuation Contribution Tax (ESCT) Start and finish dates if an employee starts or stops working for you during the pay period

Choose a payroll plan that suits your business

SINGLE TOUCH
PAYROLL APP

$0

/month

1 - 4 employees

Single Touch Payroll reporting

RECKON ONE
PAYROLL

$8

/month

INCLUDES
Unlimited employees

Single Touch Payroll reporting

Pay your employees

Calculate superannuation

Track leave & allowances

RECKON
ONE

$16

/month

INCLUDES
Unlimited employees

Single Touch Payroll reporting

Pay your employees

Calculate superannuation

Track leave & allowances

Mobile & web application

Accounting basics

Single Touch Payroll Resources

What are the benefits of moving to STP?

Reckon is supporting STP

Reckon is STP-ready and ATO compliant for the following products:

Our new application GovConnect STP makes meeting your STP requirements quick and easy. GovConnect STP acts a gateway to the ATO enabling you to view and lodge your STP reporting no matter what Reckon product you use.

When does Payday filing start? Payday filing was made mandatory for all employers from 1 April 2019. Payday filing has been voluntary from 1 April 2018, and switches to mandatory from 1 April 2019. It’s a good idea to start thinking about how you’ll make Payday filing part of your payroll processes before this becomes a requirement.

Existing customer? Enable your product for STP now!

We’ve created a Single Touch payroll customer hub to help current Reckon customers stay STP compliant. Simply click on your product for specific help guides, how to create a GovConnect account and a list of frequently asked questions.

Get STP ready today with Reckon

We’ve got ATO complaint solutions to suit any business.