An Australian government initiative
Single touch payroll (STP) is an Australian government initiative aimed at streamlining the reporting of tax and superannuation information for businesses. Instead of reporting this information to the Australian Taxation Office (ATO) at the end of the financial year, businesses using STP report it directly to the ATO each time they run their payroll.
STP requires employers to report details such as salaries and wages, pay as you go (PAYG) withholding, and superannuation contributions for each employee. This helps the ATO to have real-time visibility into employer obligations and ensures that employees receive accurate information about their year-to-date earnings.
In essence, single touch payroll is a more efficient and automated way for businesses to meet their reporting obligations, promoting transparency and reducing the administrative burden associated with traditional reporting methods.
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