Single Touch Payroll Penalties

Penalties

• $210 for a late STP lodgment and then for every 28 days it isn’t lodged.

• Large employers these penalties can apply NOW.

• Small employers (<20 employees) no penalties until after 30 June 2020, unless the ATO has issued you with a demand.

• Late payment penalties – same as always

• Late Super penalties – same as always

Blog page

How STP works

STP works by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll.

When you start reporting:

  • Your payroll is run and you pay your employees as normal, and provide a payslip
    • your pay cycle does not need to change (you can continue to pay your employees weekly, fortnightly or monthly)
  • your STP-enabled payroll software will send the ATO a report which includes the information the require, such as salaries and wages, pay as you go (PAYG) withholding and super information

You will be reporting super liability information through STP for the first time. Super funds will also be reporting to the ATO. They let the ATO know when you make the payment to your employees’ particular super fund. This is an important step toward making sure employees are paid their correct entitlements.

Your employees will be able to see their year-to-date tax and super information in ATO online services, which can only be accessed through myGov. Their data is updated every time you report (each pay day for most employers). Without STP reporting, employee data is only reported at the end of the financial year.

If you make mistakes in your STP report, you can correct it in your following report.

At the end of the financial year, you’ll need to finalise your STP data.

You will no longer have to give your employees a payment summary for the information you’ve reported and finalised through STP. Once you finalise your data, your employees or their registered agent will be able to lodge their income tax return using the STP information available in ATO online/

You will no longer need to provide the ATO with a payment summary annual report (PSAR) at the end of the financial year for the payments you report through STP.

Due Date for Super Guarantee contributions

  • Note: The Superannuation Guarantee charge is not a tax deduction if not paid by these dates.
  • Note: Refer to the ATO for details regarding any SGC charges applicable if not paid the due date.