Latest Update: IT Vision’s Single Touch Payroll (STP) solution is now fully released, for details on how to implement and use it please refer to the new IT Vision STP guide document.
What is Single Touch Payroll?
Single Touch Payroll (STP) is a new taxation reporting process that replaces Payment Summaries (Group Certificates). From 1 July 2018 onwards, payment details will be provided electronically to the ATO each pay period, and there is no need to produce a payment summary to either the ATO or employees at the end of the financial year.
Check out some of the great resources the ATO have made available to introduce Single Touch Payroll:
- General information on STP
- Single Touch Payroll employer reporting guidelines
- Employer factsheet
- Employer get ready checklist
Does Single Touch Payroll affect me?
STP is mandatory for employers with 20 or more employees. This is determined by a headcount as at 1 April 2018. It is also likely to become mandatory for employees with 19 or less employees in the future.
When do I need to start using Single Touch Payroll?
STP becomes mandatory for affected employers from 1 July 2018.
What is IT Vision doing to support Single Touch Payroll?
Last year IT Vision commenced work on building a unified STP solution that enables both SynergySoft and CivicView Payroll customers to comply with the new STP reporting requirements, as well as building a basis for additional ATO reporting in future. That solution consists of two key components:
- New features have been added to both SynergySoft and CivicView Payroll modules to manage the collection of data that is required for STP. These include some functional changes and new processes behind the scenes to extract the payroll data and send it securely to our next generation cloud-based Altus platform. All these changes will be included in the April releases of SynergySoft and CivicView (both currently scheduled for publication on 30 April 2018).
- Additionally, a new Altus (web-based) application enables both Synergysoft and CivicView users to review the STP data that was collected from their Payroll module, make amendments where appropriate, and manage the submission of that data to the ATO. The application proactively obtains the latest information from the ATO regarding the status of submissions, ensuring users can easily understand the ATO’s responses and where necessary take further action accordingly. This Application is now released and available to all IT Vision Customers. Please note your organisation must be Altus Enabled to be able to access it (see the next question ‘As an IT Vision client, what do I need to do to get ready for STP?’ for further details on being Altus Enabled).
As an IT Vision client, what do I need to do to get ready for STP?
- Ensure you are ‘Altus enabled’; if your organisation has not yet scheduled to be connected to the Altus platform then please contact our Product Manager, Glenn Cameron by calling 08 9315 7059 or email firstname.lastname@example.org to arrange for this as soon as possible.
- Understand the business implications of STP, and consider the possible changes required to your business processes. The ATO resources (see ‘What is Single Touch Payroll?’ question above) provide a great way to get started, and if you have any queries about the STP process or requirements in general then please contact the ATO directly.
- Review the ATO STP Business Scenarios guide to understand the STP reporting requirements for various payroll situations.
- Ensure you are on a suitable version of SynergySoft/CivicView. For SynergySoft this is at least version 11.1.183 released April 2018 (please note: subsequent patch V11.1_PATCHSR182146.ITV, and May release 11.1.194 provide further improvements for STP). For CivicView this is the April 2018 release.
- Refer to the IT Vision Single Touch Payroll Guide for full details on how to complete the implementation process for your organisation, and commence submitting payrun data to the ATO.
Does Single Touch Payroll affect my BAS reporting?
Only minimally. Salary or wage information and PAYG withholding amounts (W1 and W2) reported through Single Touch Payroll will be pre-filled into your BAS. You will still have the ability to adjust or correct this information in your BAS.
Does Single Touch Payroll affect SuperStream reporting?
No. While superannuation information will be included in the information reported to the ATO as part of Single Touch Payroll, existing SuperStream arrangements will not be impacted.
How much will IT Vision charge for the Single Touch Payroll update?
There will be no additional charge for the Single Touch Payroll features. Charges may apply for implementation, configuration and training as per standard IT Vision rates.
How is IT Vision ensuring that the Single Touch Payroll solution is reliable and secure?
In addition to our own extensive experience of delivering reliable and secure solutions to Australian customers for several decades, we have partnered with some best of breed technology providers to ensure we deliver the best solutions to our customers. OutSystems provides IT Vision with a very well established and technologically advanced cloud-based platform which sits at the core of our Altus product suite. We have also partnered with SuperChoice who is a market leader in providing highly secure services to enable data exchange with the ATO. They are highly experienced in this specialist area, already providing services to large financial institutions such as ANZ, KPMG, MYOB, Suncorp and Local Government Super. In addition, the ATO reviews many facets of our technical and business infrastructure to ensure it complies with its strict requirements, and it also specifically tests our STP solution to ensure that the data it is passing to the ATO is correct.
What if our business is not ready to comply with the STP requirements on July 1 2018?
The ATO has stated that it does not typically intend to fine businesses for the non-submission of STP data in the first year, and in rare cases where they do pursue a fine it will only be after issuing a warning to that business. Furthermore, it has also introduced a deferral scheme through which a business can be granted a deferral. For more details please contact the ATO directly.