Single Touch Payroll (STP) is a government initiative in Australia that requires employers to report their employees’ payroll information to the Australian Taxation Office (ATO) every time they pay their employees. The reporting is done through the employer’s payroll system, which sends the data directly to the ATO.
STP was introduced to simplify the process of reporting payroll information to the ATO and to ensure that employers are meeting their tax and superannuation obligations. The ATO uses the information reported through STP to calculate the correct amount of tax and superannuation that should be paid by employers.
Superannuation compliance in Australia refers to an employer’s obligation to contribute a portion of their employees’ earnings to a superannuation fund. The current rate of contribution is 10% of an employee’s ordinary time earnings. Employers are also required to report and pay their employees’ superannuation contributions on time to avoid penalties.
STP reporting includes information about superannuation contributions, so employers who are compliant with STP are also meeting their superannuation compliance obligations. STP reporting makes it easier for employers to manage their payroll reporting and ensure they are meeting their tax and superannuation obligations.