Table of ContentsWhat are the benefitsTo whom does it applyWhat to do before 1 July 2018Information for employeesSTP is a reporting change introduced by the Australian Taxation Office (ATO ) to streamline the way employers report certain taxes and superannuation information to the ATO. This means employers will report wages and salaries, pay-as-you-go (PAYG) deductions and superannuation information to the ATO directly from their payroll solution, at the same time as they pay their employees. Say no to plagiarism. Get a tailor-made essay on 'Why violent video games should not be banned'?Get an original essayWhat are the benefitsSome 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, thus 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 through myGov. The ATO may allow employers to collect tax return and super choice information online via myGov when onboarding new employees. STP certainly has some administrative benefits, however, there are a few things that need to be in place before the mandatory change on July 1, 2018. Who does it apply to? For employers with 20 or more employees, STP reporting begins July 1 2018. Employers with fewer employees can still report voluntarily, although it is not required. The Australian Government will extend the STP to include employers with 19 or fewer employees from 1 July 2019, subject to legislation being passed. What to do before July 1, 2018 Employers must carry out a headcount on April 1, 2018 to determine whether they are required 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 “significant employer” and will need to report via STP from 1 July 2018. Once that you are a significant employer, you will need to continue to report via STP even if your number of employees falls below 20. You must include the following employees in your workforce: full-time employees part-time employees casual employees who are on your payroll as of April 1 and worked at any time in March employees based overseas any employees absent or on leave (paid or unpaid) seasonal employees (staff engaged on a short-term basis to meet a workload of regular peak)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 recruitment organization business managers office holders religious practitioners The ATO may postpone the date on which you must start your STP declaration if: your payroll solution will not be ready for the STP declaration by July 1, 2018 you have entered into receivership or liquidation you have been affected by a natural disaster you are affected by an unrelated circumstance of your willIf you are not ready to start declaring from July 1, 2018, you will need to request a deferral before this date. Your registered tax agent can request a deferral on your behalf. Keep in mind: this is just a sample. Get a personalized document from our expert writers now. Get a Personalized Essay Information.