Cruz and Co

We know tax. Let us look after yours.

  • Home
  • About
    • Meet the Team
    • Our Clients
    • Testimonials
  • Services
    • Tax Consultant and Compliance Services
    • Small Business and Sole Trader Accountant
    • Outsourced Accounting Solutions
    • Business Structure
    • Outsourced CFO
    • Working Visa Refunds
  • Resources
    • Tax Refund Process
    • Client Assistant Schedule forms
    • Downloadables
    • Helpful Links
    • Rental Property Cashflow calculator
    • SMSF Tax Refund Process
  • Contact Us
  • Blog

Connect with us

  • Facebook
  • LinkedIn

Countdown to Single Touch Payroll: Everything You Need to Ask

By Alex Alexandrou 

KEY FACTS

What: Single Touch Payroll (STP)

When: 1 July 2018

By: Australian Taxation Office

For: Employers with 20 or more employees

*The STP will apply to employers with 19 or less employees from 1 July 2019 – subject to parliament

Time is well and truly ticking as the countdown begins for larger businesses in Australia to get Single Touch Payroll (STP) compliant. Designed to streamline business reporting, the new scheme has the noble ambition of saving time and resources for companies at the end of financial year, by requiring each pay run to be reported.

Come 1 July 2018, employers with 20 or more employees will have to send payroll information to the Australian Taxation Office (ATO) at the same time as they typically pay their staff. This could be weekly, fortnightly or monthly, and includes everything from salary and wages, to PAYG withholding and superannuation. That said, businesses with 19 or less employees can also get on the front foot by voluntarily opting to get STP compliant this year.

So how can Australian businesses ensure compliance? Understanding how the new reporting requirement applies to your business can enable a smoother transition. Here are some key considerations and important questions you should already have answers to.

  1. Communication is key

Get your staff across the changes early to ensure a smooth transition to STP.

  • Are your payroll and finance staff aware of the changes and receiving regular updates?
  • Do you have a plan for communicating the changes to employees?
  1. Understand your requirements

STP is an ATO requirement so it’s important to understand the impact on your business.

  • Do you know the date of your business is required to report via STP?
  • Do you know about the STP employee headcount and cut-off date?
  • Do you know exactly who does and does not count as an employee for STP purposes?
  • How will STP and MyGov impact onboarding for your business?
  1. Assess your current payroll data

To avoid submitting inaccurate information to the ATO when STP starts.

  • Is your PAYG withholding calculating correctly on your employee salaries and wages?
  • Are your employee superannuation payments calculating correctly via a SuperStream compliant solution?
  • Is your employee data accurate and up to date?
  1. Evaluate your current payroll solution

Review your current payroll process to ensure you are compliant when STP begins.

If you’re currently using accounting software…

  • Is your current payroll solution enabled for STP, or will it be?
  • Do you need to upgrade your payroll software?
  • What should you do if your software provider won’t be ready by 1 July?
  • How much time do you need to implement changes, if necessary?
  • Will there be costs associated with implementing STP?

If you’re currently using a third party service…

  • Is your third party solution using an STP compliant solution?
  • Will your third party solution lodge your STP reports to the ATO on your behalf?
  • Are there approvals required to facilitate the STP reporting process on your behalf?
  • Are there additional fees for the creation or lodgement of STP reporting?

If you’re currently using paper…

  • Do you have a plan to update your processes? Note: Reporting payroll manually will no longer be sufficient to remain compliant.
  • Will you switch to a payroll software provider or engage a third party to report on your behalf?

The move to STP is a significant one involving over 70,000 larger businesses, according to the ATO. However, it doesn’t have to be a hassle or challenge for individual employers to ensure compliance.

By following the simple checklist above and getting prepared sooner rather than later, businesses will stand to benefit from a smarter, more efficient system of payroll reporting that saves them valuable time and resources during end of financial year.

 

Source: Dynamic Business

Testimonials

  • Kellie Pincham

    Director
    Automotive Parts Retailing business

    Cruz & Co offer a great professional and friendly service. Ritchie gave me confidence running the business knowing that he was readily available for…

    Read full testimonial
  • Jae Kwon Yoo

    Business Tax – Electrical Contractors

    Ritchie is awesome. He is very professional and responsive and he is always there to help you. He even replies during weekend. He needs some…

    Read full testimonial
  • Dr Krish Perananthan

    Cosmetic and Implant Dentistry

    Ritchie was recommended to me by my father and I have also continued to recommend him to my friends. He is reliable, efficient and has a…

    Read full testimonial
  • Vanita Aloda

    Restaurant Owner

    Ritchie Cruz is my Accountant. We have a solid 10 year relationship.

    Ritchie as always provide me with honest and efficient service.

    Is a great communicator, always replies efficiently to…

    Read full testimonial
  • Regina Wang

    Business Tax – Beauty Salon 

    Ritchie has been managing my tax matters as a sole trader for 2 years+. Always very responsive to my questions and make effort to reply…

    Read full testimonial
  • Daniel Robey

    I have and continue to recommend Cruz and Co to many businesses and individuals who are looking for a business advisor and accountant that goes over and above…

    Read full testimonial
  • Jonathan Yeoman

    Director, Technical Design Company

    This is a new business startup and Cruz&Co. have provided great help, guidance and reassurance from the beginning.

    Ritchie has provided us with excellent service and…

    Read full testimonial
  • Zac Fryer

    Director, Import and Distribution Company

    Ritchie Cruz provides and high level of accounting expertise and goes above and beyond in answering any queries we have.

    Read full testimonial
  • Napoleon Guines

    Director, Travel Company Operations

    Ritchie Cruz and Co are accommodating and have excellent service.

    Cruz & Co have impressed me the most is due to their efficient service.  They are…

    Read full testimonial
  • Jonathan Fambart

    Business Tax – Travel Industry

    Cruz & Co was introduced to me this year and it was the best decision for my sole trader and personal taxation affairs. Ritchie the…

    Read full testimonial

© 2025 Cruz & Co.

  • Home
  • About
    • Meet the Team
    • Our Clients
    • Testimonials
  • Services
    • Tax Consultant and Compliance Services
    • Small Business and Sole Trader Accountant
    • Outsourced Accounting Solutions
    • Business Structure
    • Outsourced CFO
    • Working Visa Refunds
  • Resources
    • Tax Refund Process
    • Client Assistant Schedule forms
    • Downloadables
    • Helpful Links
    • Rental Property Cashflow calculator
    • SMSF Tax Refund Process
  • Contact Us
  • Blog