From 1 July 2018, STP Reporting is mandatory for employers with 20 or more employees. If you report through STP, you are no longer required to provide your employees with Payment Summaries.
Reporting is optional for employers with fewer than 20 employees, but the ATO intends to make it mandatory from 1 July 2019. If you do not report through STP, you will still be required to provide your employees with Payment Summaries.
The ATO aims to deliver the following benefits:
As the values sent for employees are YTD values, when the employee is next paid, the new YTD values will be sent, allowing your natural business processes to handle corrections.
The ATO will allow you to correct any errors you make in the next cycle of reporting.
No. When the pay event is sent, messages will be sent back to the employer if the file was successfully received. Error messages identified through processing of the payroll event will be returned via SBR.
The ATO is currently designing the process for additional messages they will provide employers after analysing payroll event information.
As an employer reporting under Single Touch Payroll, there are a number of withholding payments that are either:
Please refer to the latest guidance from the ATO around how to report and fix payroll information, and rules on how to finalise payroll information at the end of financial year (EOFY).
The ATO will provide you with a period of time to correct your Single Touch Payroll report without being liable to a penalty for making a false or misleading statement. This is called a 'fix', and if you make that fix within the grace period, you will not be liable to a penalty.
You may be exempt from giving payment summaries and a payment summary annual report for the amounts you reported through Single Touch Payroll. This information will be made available to your employees in ATO online services, accessed through myGov. Your employees can also request a copy of this information from the ATO.
If you notify your PAYG withholding liability on an activity statement, the ATO will pre-fill the employer-level gross payment and withholding amounts you report in pay events into labels W1 and W2 on your activity statements.