Single Touch Payroll and the Date Matching
The ATO introduced STP for all employers fazed in over the past two financial years. STP reports wages information to the ATO on a weekly/fortnightly or monthly basis as the employee is paid. It includes Gross Wages, Tax and Super liability.
From 1 July 2021 all employees must be reported on STP compliant software and data must be lodged no later than 48 hours after wages are paid. This now includes all closely held employees meaning directors and associated persons employed by a company.
In the 2020 Budget it was announced that there will be an expansion of the data collection through STP which aims to reduce multiple reporting to various government agencies. As of 1 January 2022 the payroll software will be upgraded to include information that will be used to verify and report wages information for Child Support, Centrelink and other government agencies. It will also expand income details to match better to foreign agencies, Trust Information and for those on working holidays. Expenses paid from your wages like union, Donations etc will also be more defined so when doing your tax return many of these items will flag if not entered in your tax return correctly.
At this point you don’t need to worry about this as it will be an automatic process but what you will need to be careful of is what you now report on your wages and make sure your software is working out payroll items accurately.
Although this is a bigger burden on employers we are here to help. Just make sure you keep your software updated and using online software will assist us when helping you make sure you are meeting your reporting obligations.