It may be worth dusting off last year’s PAYG summary. It is about to become a collector’s item. Single Touch Payroll (STP) is with us, and it’s changed the way your wage or salary is recorded.
If your workplace has 20 or more staff, your employer should have started using Single Touch Payroll last July. If there are fewer than 20 employees, STP kicks off from 1 July 2019.
Here’s what you need to know.
What is Single Touch Payroll?
STP makes payroll reporting easier for employers. Instead of juggling a raft of paperwork, your boss reports payroll details including super payments, to the Australian Tax Office (ATO) on or before each pay day. That’s done using payroll software that sends your pay details (and superannuation details) directly to the ATO.
You are still paid the same way. It just means details of your pay and tax withheld go direct to the ATO in ‘real time’ – as it’s paid, instead of once at the end of the year.
Income Statements Replace Your PAYG
A big change with STP is that your employer won’t have to provide a PAYG summary or Group Certificate at the end of the year. The PAYG is now the “Income Statement” but it is not a document they will necessarily give to you.
The good news is, it doesn’t matter in terms of your tax return. You don’t need a summary to do your taxes. Etax (and any tax agent) will find the summary on your ATO file and add it to your return automatically.
With STP, some employers might also stop giving you regular pay slips. Instead, STP lets you access details of your pay and tax paid at any time via the myGov portal.
Is STP good for unpaid super?
STP also lets you check if your employer is up to date with your super contributions. That’s a good thing. Employers who don’t pay super cost an estimated one in three Australian workers about $2,000 each year.
What about your tax return?
Etax has you covered.
A new system can feel uncomfortable, especially when your pay is involved. But STP is really quite straightforward, and the good news is the Etax has STP covered.
Etax automatically gets all the info needed for your tax return from your ATO file and adds it to your return. You don’t have to find an income statement and you don’t have to use myGov to access your records. We’ll do it all for you.
Just start filling out your tax return and your data should populate automatically. If you need a hand, your Etax accountant is available directly to answer any questions via live chat and phone on 1300 693 829.