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Single Touch Payroll
for
Small Employers
UNCLASSIFIED: Australian Taxation Office
Why Single Touch Payroll?
Streamlined reporting
Protecting Super Guarantee entitlements
Use of natural business
processes/systems
Real time information
Levels the playing field
Helps prevent end of year
tax surprises
UNCLASSIFIED: Australian Taxation Office
Consultation with Micro Focus Group
1 July Start date for
employers with
20 or more
employees
1 July Start date for
employers with
19 or fewer
employees
Small Business
Pilot
conducted
Small Business
Pilot Final Report
published
September Legislation passed
for employers with
20 or more
employees
2019
Background
2019 2018 2016 2017 2016 Consultation with
Industry
February Legislation
passed to extend
to all employers
Commissioners
statement
published
What we heard: • Cost
• Non-digital employers
• Some are heavily reliant on their registered agents
• Closely held payees
UNCLASSIFIED: Australian Taxation Office
65K+ Employers now reporting
43K+ substantial employers
20K+ small employers
4.6M+ employees can see their STP
information in
Progress update as at 5 March
services now deployed
Employee Commencement
UNCLASSIFIED: Australian Taxation Office
Single Touch Payroll
How does it work?
UNCLASSIFIED: Australian Taxation Office
Payslip
Bank file/EFT/Internet banking
Super payment made to fund
SuperStream report
How Single Touch Payroll works
Software
Existing payroll process
Tax and super information is sent to the ATO through
Standard Business Reporting every pay day
Pay event Submission
• Salary or wage information • Tax withheld • Superannuation liability
Super contribution amounts reported to the ATO by the super
fund
Member Account Transaction Service
• Employer information • Employee information • Superannuation contribution
New under STP
UNCLASSIFIED: Australian Taxation Office
Employers can view their STP lodgments in the portal
ABN 12345678999 TFN 12345678999
11223344
ABC INC
IP33221nb-V123-458v-PRG611122144
Current Client
Great Company
UNCLASSIFIED: Australian Taxation Office
Employees will be able to see their information in ATO online services
Employee views - ATO Online
Great Company
Great Company
Employees can click
here to expand for
more detail
UNCLASSIFIED: Australian Taxation Office
Great Company
Great Company
Employee views - ATO Online
Great Company PTY LTD
12 345 678 999/001
IP33221nb-V123-458v-PRG6B1144
UNCLASSIFIED: Australian Taxation Office
Employee views - ATO Online Employees will be able to see their super information in ATO online services
Last
Last
Last
Last
UNCLASSIFIED: Australian Taxation Office
EOFY Finalisation Declaration How will EOFY be different?
Employers will be exempt from providing payment summaries where information has been reported and finalised though Single Touch Payroll - by the 14 July due date or deferred due date.
Employer submits finalisation declaration to
the ATO
Employee can view their information in ATO Online
services via myGov
Amendments after finalisation
Employers will need to provide a payment summary for any payments not reported through Single Touch Payroll i.e. employee share scheme
ATO prefills information in Income Tax Returns
If an employer identifies the need to amend details after making a finalisation they can submit an update event within 14 days of detection.
Tax Ready
PLS
UNCLASSIFIED: Australian Taxation Office
Correcting a payroll event report
Must report within 14 days of detection
Rollover Correction - report at next pay cycle
Update event
Full file replacement - for significant errors
*Out of cycle payments
Employers can either submit a pay event on that day or in their next pay cycle.
UNCLASSIFIED: Australian Taxation Office
Transitioning
Small employers
UNCLASSIFIED: Australian Taxation Office
.
33% already use
payroll software 17%
use no software
50% use some software
67% already use
payroll software
9% use no
software
24% use some software
What we know about software usage
Micro employers (1-4 employees)
Employers with 5-19 employees
45% already use
payroll software 15% use no
software
40% use some software
All small employers
There are 749,000 small employers. Here is what we know about their software usage:
UNCLASSIFIED: Australian Taxation Office
We co-designed
.
Low/no cost reporting solutions
($10 or less per month)
Simplified reporting requirements
(limited set of fields)
Transitional relief by way of deferrals
and/or exemptions
Transitional relief by way of quarterly
reporting until 30 June 2021
We consulted with a tax practitioner and industry representative group to explore practical solutions for helping small and micro employers transition to STP - especially those with little or no digital capability. The group targeted four needs associated with micro employers (1-4 employees) with low digital capability:
UNCLASSIFIED: Australian Taxation Office
Simple, low/no cost reporting solutions
The ATO called for expressions of interest from Digital Service Providers to develop appropriate low or no cost payroll or reporting solutions.
You can take a look at a product register by visiting ato.gov.au/stpsolutions
The Criteria:
A low or no-cost solution ($10 or less
per month for micro employers 1-4 employees)
A simple user experience
‘Minutes’ to complete per pay
event
An easily repeatable experience
Pain free set up Easy to access help (especially at setup)
Secure online environment
Solution is provided as an ‘end-to-end’
service to the employer
UNCLASSIFIED: Australian Taxation Office
Quarterly reporting – for micro employers To support employers with 1-4 employees to move towards pay day reporting we are offering quarterly reporting.
Quarterly reporting arrangement up until 30 June 2021
Agents will be able to apply for this concession electronically
Digitally assisted lodgment through registered agent
What we will consider when assessing the application:
• all amounts owing to the ATO are either not yet due or subject to a payment plan • all lodgment obligations are either not yet due or subject to a deferral
• meets any one of the following criteria: o non computerised business
o irregular employment patterns o closely held
UNCLASSIFIED: Australian Taxation Office
Extended finalisation due date (the due date of the income tax return)
for the closely held payees.
In line with existing concessions for Pay As You Go (PAYG) Payment Summaries.
Reporting closely held payees We will support small closely held employers to transition to STP by:
Exemption for closely held payees for 2019-20 financial year.
Closely held payee reporting will need to
commence 1 July 2020.
Quarterly pay event period for closely held payees.
Arms-length employees will need to be
reported each pay day.
We hosted a topic based webinar on reporting closely held payees on 18 March 2019.
Watch the recording at ato.gov.au/stp > news,
events and resources.
UNCLASSIFIED: Australian Taxation Office
Requesting
More time and exemptions
UNCLASSIFIED: Australian Taxation Office
Requesting more time
If an employer can commence reporting before 30 September 2019, there is no need to apply for more time
An online deferrals an exemption form will be available to apply for
more time
The solution will be available from 1 April
A majority of requests will be accepted in real time without the
need for further assessment
Things to consider: Are all lodgments and payments
up to date? (or subject to a deferral/payment plan)
UNCLASSIFIED: Australian Taxation Office
Requesting an exemption We will assess exemption requests on a case by case basis.
Applications can be submitted using the online form or by contacting the ATO
Hardship Intermittent or no internet
connection
Other extenuating
circumstances
UNCLASSIFIED: Australian Taxation Office
Online deferrals and exemptions
UNCLASSIFIED: Australian Taxation Office
Focus
Helping employers get it right
UNCLASSIFIED: Australian Taxation Office
Allowing time for self correction
Purposeful Engagement
Two way interaction
Data Integrity
Our engagement approach
UNCLASSIFIED: Australian Taxation Office
What your experience might look like Our treatments will range from reminders and nudges to more directive interventions where needed.
UNCLASSIFIED: Australian Taxation Office
We will encourage and support you in maintaining a good client experience with the lightest touch possible.
Green Lane
Help & Assist
We will provide tailored support and assistance to help you meet your obligations with the larger aim of helping you move towards the ATO’s target engagement
behaviours.
High Trust
We will tailor your experience We will tailor our engagement to your behaviours over time.
We will apply the law firmly and fairly to your non-compliance behaviours, while responding to indicators of positive engagement by providing help and assistance
where it’s warranted.
Red Lane
Orange Lane
Poor Compliers
UNCLASSIFIED: Australian Taxation Office
Checklist
Getting ready for Single Touch Payroll
UNCLASSIFIED: Australian Taxation Office
Determine how you will report through STP 1
The get ready checklist
If you use payroll software, talk to your provider
Talk to your staff about STP
Apply for more time if you need it
See our Single Touch Payroll employer reporting guidelines
Update or install your software when its ready
2
3
4
5
6
UNCLASSIFIED: Australian Taxation Office
ato.gov.au
Events
Topic based webinars
Where to find out more
Articles
Speak with
your provider
BMS
BMS
Speak with your registered agent
UNCLASSIFIED: Australian Taxation Office
UNCLASSIFIED: Australian Taxation Office