The first phase of the Australian Taxation Office’s (ATO) Singe Touch Payroll (STP) system is slated for go live at the start of the 2019 financial year, with businesses boasting 20 or more employees the first to use the system.
The STP is a new way for employers to report employees’ payroll information to the ATO. Payments such as salaries and wages, pay-as-you-go (PAYG) withholding, and super information will be delivered to the ATO via the STP system when businesses pay employees.
In December 2015, the government announced that the introduction of STP would also include streamlined processes for individuals commencing employment. Individuals would have the option of completing their Tax File Number (TFN) declaration and Superannuation Standard Choice forms using myGov or through their employer’s business management software.
In getting ready for STP, the ATO recommends businesses reach out to their software providers to ask them when and how their product will be updated to offer STP reporting.
Some software providers have been granted extensions past the July 1 commencement date.
In response to Questions on Notice asked by Senator Chris Ketter on behalf of the Economics Committee earlier this year, the ATO provided an update this week on the STP’s online choice form.
Specifically, the ATO was asked whether it had undertaken any consumer testing of specific designs, and whether the testing had resulted in “good decision making” ahead of its go-live date.
“As part of designing these new services, the ATO has conducted a number…