Single Touch Payroll - What’s in it for Business?
14 September 2017
Why the change?
The move to Single Touch Payroll Reporting (STPR) sets a new standard for payroll reporting in Australia. Most businesses will be used to form filling at the end of the month, quarter or year, but now the ATO will have access to real-time transactional data. This then means their compliance activities will be completed in real time, which we think will begin to change the way they engage with taxpayers when issues do arise.
The change could also affect the way this information is shared between other agencies, as it aligns with the ATO's current information sharing agreement. This means, for example, the ATO will potentially be able to share real-time payroll data with an agency like Centrelink, instead of continuing to do it a year after the fact.
Superannuation payments will also be affected by the new STPR system. For the first time, the ATO is going to be able to match an employee's payment to a superannuation fund to an actual real-time payslip, rather than waiting for an annual report from an employer with no guarantee the money has actually made it to the individual superannuation account.
BDO recommends you understand how this change applies to your organisation and begin planning your roll-over to this new reporting requirement. Need help? Register here for a complimentary STPR action plan consultation with a BDO expert.