STP has been introduced by the Australian Government and it will affect the way in which wage information is reported to the ATO.
Previously, employers were required to report their employee’s earnings once a year via lodgement of the PAYG Payment Summary Annual Report. They were also obligated to issue their employees’ a PAYG Payment Summary. Employees would then use it to prepare their Individual Income Tax Returns.
The new process will see employers reporting wage information (including superannuation payments) each pay day. No other reporting requirements will change.
Date of effect
From 1 July 2018, employers with 20 or more employees must register for STP and begin reporting wage information through the payroll/accounting system.
Employers with fewer than 20 employees will have the same reporting obligations from 1 July 2019.
Please note that some employers can opt for early registration.
What does this mean for employers?
Employers must register for STP before their required date and begin reporting via STP-enabled software.
We encourage employers to contact us for further information or follow the below link to an ATO issued factsheet.
What does this mean for employees?
From the payroll year your employer has registered for STP, you will no longer receive a PAYG Payment Summary for you to use to complete your Individual Income Tax Return. Instead, this information will appear on your ATO pre-fill which you are already familar with via myGov. Your Tax Agent will have access to this information as well.
Your employer will have up the 14 July each year to report your final payment information via STP. This will mean that you may not be able to lodge your Individual Income Tax Return until after 14 July. We ask our clients to not book a meeting with us to prepare their tax return until after this date.