IndexWhat are the advantagesWho appliesWhat to do before 1 July 2018Information for employeesSTP is a reporting change introduced by the Australian Taxation Office (ATO) to simplify the way in which employers of work declare some taxes and pension information to the ATO. This means employers will report wages and salaries, pay as you go (PAYG) and superannuation information directly from their payroll solution to the ATO at the same time they pay their employees. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay What are the benefits Some of the benefits to employers as a result of this streamlining process include the ability for the ATO to pre-populate the BAS (W1 and W2) for employers, eliminating potential errors and double-handling. The need to generate and distribute payment summaries can be eliminated for employers as this information will be made available online via myGov. The ATO may allow employers to collect tax returns and super choice information online via myGov when hiring new employees. STP certainly has some administrative benefits, however, there are some things that need to be put in place before the mandatory move on 1 July 2018. Who it applies to For employers with 20 or more employees, STP reporting starts from July 1, 2018. Employers with fewer employees can still report voluntarily, although this is not mandatory. The Australian Government will expand the STP to include employers with 19 or fewer employees from 1 July 2019, subject to legislative approval. What to do before July 1, 2018 Employers must conduct a headcount on April 1, 2018 to determine their obligation to report via STP; organizations with 20 or more employees will need to start reporting from July 2018. If you have 20 or more employees on 1 April 2018 you will be a “substantial employer” and will need to report via STP from 1 July 2018. Once you are a large employer, you will be required to continue reporting via STP even if your employee count drops below 20. You must include the following employees in your workforce: full-time employees part-time employees casual employees who are on your payroll on 1 April and worked at any time during March overseas-based employees any employees who are absent or on leave (paid or unpaid) seasonal employees (staff hired on a short-term basis to meet a regular peak workload) Do not include: any employee who stopped working before April 1, casual employees who did not work in March, independent contractors, staff provided by a third-party labor hiring organisation, company directors, office holders, religious professionals. The ATO may postpone the date on which you are required to start STP reporting if: your payroll solution will not be ready for STP reporting by 1 July 2018 you have entered administration or liquidation you have been affected by a natural disaster you have affected by a circumstance beyond your control If you are not ready to start reporting by July 1, 2018, you will need to request a deferral before that date. Your registered tax agent can request a deferral on your behalf. Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essay.