The Single Touch Payroll App!
Get STP compliant from 1 July 2019.
Everything Small Business Owners Need to Know About STP
What is Single Touch Payroll (STP)?
STP is a new way for employers to report employees tax and super information to the Australian Taxation Department (ATO), on or before the day employees are paid.
Why do I need STP?
Because the ATO has advised that from 1 July 2019 all businesses with employees must do this.
How do I become STP compliant?
There are a number of ways you can do this, including full fledged accounting systems, payroll agencies etc.
If you use a solution like Easy Payslip, it will take care of STP for you, and make your whole payroll process super simple by calculating tax, super and payslips. Better yet, you can do it all from your smart phone.
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Here are some of frequently asked questions small business owners are asking about Single Touch Payroll (STP), which we hope will support you in your journey to understanding everything about STP.
What is Single Touch Payroll (STP)?
Single Touch Payroll (STP) is a new way for small business owners that employ staff to process payroll and report tax and superannuation information back to the Australian Taxation Department (ATO).
The ATO requires small business owners report the following employee information before or on each pay day:
- Salaries, wages, and any other payments made to employees
- Pay as you go (PAYG) withholding
- Superannuation information
Please note that payments made to employers will not change. The only thing changing is how you report this information to the ATO.
How to Process Payroll and STP via Mobile Device
In this section we describe how to Process a STP file via a Mobile Device.
STP files are generated via the Process Payroll function as shown below:
1) Click on the Process Payroll icon
2) Enter the Payroll Start & End Dates, Payment Date & Type and select the Employees for the Payroll then click the [Process Payroll] button at the bottom of the screen
3) This will take you to the First Employee’s Payslip data entry screen
When you have entered the Payslip details for the first employee (Goldie the Fish) then hit the [Process Payroll] button
4) This will bring up a Payslip for you to review
If you are happy with the values displayed, hit the [Send] button at the bottom of the screen.
If you need to make a change, then hit the ‘Discard’ word in the top right of the screen to take you back to the payslip details input screen as per step 3 above.
5) This will bring up the Next Employee’s Payslip data entry screen
When you have entered the Payslip details for the next employee (Kitty the Cat) then hit the [Process Payroll] button.
You will also notice that the employees are listed at the top of the screen to enable to you track which employees you have created a payslip for and those yet to be processed.
6) This will bring up a Payslip for you to review
As noted in step 4 above, if you are happy with the values displayed, hit the [Send] button at the bottom of the screen. If you need to make any changes, hit the ‘Discard’ word in the top left and reprocess as per step 5 above.
7) When you have entered all of the employees data you will be need to hit the ‘Finish’ word in the top right of the screen
8) This will bring up the Summary page outlining the amounts you have processed for the Employees for this Payroll Run. You then need to hit the [Process Single Touch Payroll (STP)] button at the bottom of the screen
9) This will bring up the STP Declaration Screen
You will note that the name of the Authorised Contact person (as entered in the Settings –> Profile screen) for your business.
10) You will then need to click on the Signature field and enter your name (as per the Authorised Contact details) in order to lodge the STP file
When the Authorised Contact name has been entered correctly, the green tick will appear on the right side of the data entry field.
You then need to hit the [Lodge Single Touch Payroll (STP)] button.
11) This will then take you to the STP screens (middle icon at the bottom of the screen)
In the Single Touch Payroll screen you will be able to see the lodgement Status of your STP files.
When you first lodge the file it will appear in the Outstanding page under the heading ‘Pending ATO Response’
The ATO may take a few days (up to 72 hours) to process your STP file so it is likely they will be Outstanding for a period of time. When they have been lodged successfully they will then be moved to the ‘Completed’ tab in these screens.
When will small business owners need to be STP compliant?
Small business owners can start reporting directly to the ATO from 1 July 2019.
How often do I need to report payroll information to the ATO?
Employers are required to report payroll information to the ATO on or before each day their employees are paid i.e. every pay day.
How does STP affect employees?
Employees are not affected by STP. Payslips through Easy Payslip can be easily emailed to them by their employer through the mobile or desktop app.
If you are an employee concerned about receiving your payslip, please get in touch with your employer.
Can I do STP on my smartphone?
How to calculate pay as you go (PAYG)/PAYG?
The Easy Payslip app calculates employee pay as you go (PAYG) information within the app. Once your employees have been loaded into the app, with salary information, bonuses and entitlements, the income tax withheld is calculated within the Easy Payslip app.