Welcome to our latest interview blog, where Natasha Hooker from Employee Matters sits down with Simon Berglund, VIP Customers for Life from Sage Australia, to demystify Single Touch Payroll (STP). This new federal government initiative, rolled out in 2018 and 2019, is a crucial topic for all Australian employers.
In this insightful discussion, Simon explains that STP reporting is a legislated requirement designed to streamline business reporting obligations. It enables employers to report payment information, such as salaries, wages, PAYG withholding, and superannuation, directly from their payroll solution in real-time when they pay employees.
Key points covered in the video include:
- Mandatory Compliance Dates: STP became mandatory for employers of 20 or more people from 1 July 2018, with the government expressing a strong intention to make it mandatory for all other employers from 1 July 2019.
- Drivers for the Change: The initiative was spurred by the discovery of approximately $5.6 billion in unpaid superannuation owed by Australian employers, and the government’s desire for real-time information on unemployment benefits, taxation records, and superannuation compliance.
- Benefits for Business Owners: Simon highlights several advantages, including streamlining administrative burdens. Employers will find PAYG withholding pre-filled by the ATO, will no longer need to submit annual PAYG reports or provide payment summaries to employees with myGov accounts, and new employees will have the option to complete TFN declarations and super choice forms online.
Main Challenge: The primary challenge identified is the change management process itself and the “fear of not knowing what you don’t know”. - Advice for Business Owners: Simon strongly advises businesses, whether or not they are Sage customers, to contact their payroll software provider to ensure they will have compliant software. If not, they should apply for a deferral with the ATO. He also recommends visiting the ATO’s Single Touch Payroll site or the Sage Single Touch Payroll portal (www.sage.com/au/STP) for comprehensive information and a self-assessment tool.
Ultimately, Simon’s key takeaway is “Don’t leave it till the last minute” as “the devil is always in the detail”. Watch the full interview to gain a deeper understanding of your STP obligations and how to prepare your business effectively.
