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SINGLE TOUCH PAYROLL (STP) WILL AFFECT ALL EMPLOYERS

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If you employ fewer than 20 people, you might not have heard of Single Touch Payroll (STP) but it’s soon to be on every employer’s to-do list, whether they like it or not!

What is STP?

STP is a reporting system that tells the ATO, in real time, when you pay wages to your employees. Other information you need to provide includes allowances, deductions, PAYG withholding and superannuation.

1 July 2019: remember the date.

From 1 July 2018, STP became mandatory for any business employing more than 20 people.

For all other employers, STP starts on 1 July 2019. This will be a big change for most businesses.

Late-breaking news!

The Single Touch Payroll (STP) Law was passed by the Senate on Wednesday, 5 December 2018 and will affect all employers regardless of size from 1 July 2019.


The ATO has received a considerable amount of push-back from small businesses protesting the additional expense of STP software. For this reason, the ATO has asked various payroll software companies to provide low cost STP solutions for small employers. Stay tuned!

We recommend CloudPayroll - www.cloudpayroll.com.au - as your STP software solution (details at the end of this article)..

Who qualifies as an employee under STP?

  • Full and part-time employees, even if they are absent or on leave.

  • Casuals who are on your payroll on 1 April and worked any time during March.

  • Australian-resident employees based overseas.

Who does not qualify as an employee under STP?

  • Anyone who stopped working for you before 1 April.

  • Independent contractors.

  • Staff provided by a third-party labour hire company.

  • Company directors and office holders, e.g. President, Treasurer, etc.

  • Religious practitioners.

CloudPayroll: the right software can make everything easier.

To comply with the new ATO rules, you’ll need access to an accredited software package. At Bongiorno, we recommend CloudPayroll, an online payroll solution that can automatically manage the STP process for you. The company takes care of migration, implementation and training for you, and offers free, ongoing and unlimited support.

If you are already using payroll software, get in touch with the manufacturers/providers to confirm they will be STP-enabled by the due date.

If you employ fewer than four people, hold off on purchasing STP software until the new year. It’s not confirmed yet, but the ATO might be offering you a cheaper solution.

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