Outsourced STP Payroll and

EOFY Compliance

 

Access efficient payroll outsourcing, payroll processing, advice and support from a team of industry experts.

Outsourced STP Payroll and EOFY Compliance

 

Access efficient payroll outsourcing, payroll processing, advice and support from a team of industry experts

Outsource your payroll to a trusted partner

Our payroll partners process payroll for businesses of all scales, from SMEs to large corporations. Employment Innovations offers end-to-end payroll solutions, which are delivered by local officers to reduce risk, save money and improve productivity.

Outsourced STP Payroll and EOFY Processing

Save time

Complete peace of mind

Improve accuracy

Save money

Outsource your payroll to a trusted partner

Outsourced STP Payroll and EOFY Processing

Our payroll partners process payroll for businesses of all scales, from SMEs to large corporations. Employment Innovations offers end-to-end payroll solutions, which are delivered by local officers to reduce risk, save money and improve productivity.

Save time

Complete peace of mind

Improve accuracy

Save money

What is STP Payroll and EOFY Finalisation?

STP stands for Single Touch Payroll, which the ATO describes as a process of offering the ability to streamline reporting, rather than having a number of separate reporting processes. This helps businesses achieve efficiencies of real-time reporting and help with their compliance processes. Ultimately, STP is a new way for employers to report tax and super information to the ATO every time they pay their employees. STP applies to:

Unused leave paid

Parental leave pay

Remuneration to the director of a company

Return-to-work payments

Termination payments

Payment to an employee under the Seasonal Labour Mobility Program

A payment made to an employee (example: salary or wages)

There are also non-mandatory details that can be provided to the ATO under STP reporting such as employer superannuation contributions, fringe benefit amounts for employees, and payments made to contractors outside payroll.

EOFY Finalisation refers to the end of financial year finalisation surrounding payroll processes. This is simply the process of finishing paying your employees for the year, checking your payroll data, and finalising this information with the ATO. This is completed once the final pay run in the financial year is processed, and there are no further employee payments to be made.

What is STP Payroll and EOFY Finalisation?

STP stands for Single Touch Payroll, which the ATO describes as a process of offering the ability to streamline reporting, rather than having a number of separate reporting processes. This helps businesses achieve efficiencies of real-time reporting and help with their compliance processes. Ultimately, STP is a new way for employers to report tax and super information to the ATO every time they pay their employees. STP applies to:

A payment made to an employee (example: salary or wages)

Unused leave paid

Parental leave pay

Remuneration to the director of a company

Return-to-work payments

Termination payments

Payment to an employee under the Seasonal Labour Mobility Program

There are also non-mandatory details that can be provided to the ATO under STP reporting such as employer superannuation contributions, fringe benefit amounts for employees, and payments made to contractors outside payroll.

EOFY Finalisation refers to the end of financial year finalisation surrounding payroll processes. This is simply the process of finishing paying your employees for the year, checking your payroll data, and finalising this information with the ATO. This is completed once the final pay run in the financial year is processed, and there are no further employee payments to be made.

How payroll works

Our payroll service starts with the preparation of your plan by calculating your payroll based on the relevant information and data.

Following preparation, your Payroll Business Partner  will review all relevant data, ensuring accurate Award Interpretation and compliance. It’s during this stage that our client’s review all their payroll, and provide further adjustments or approval.

Next, your Payroll Partner  will ensure your EFT files are generated, your General Ledger and post payroll reports are provided, and your STP is lodged.

Lastly, to keep the process transparent, accurate, and streamlined, your Payroll Partner  will offer continued business support with payroll queries, system queries, superannuation updates, processing and monthly reporting, as well as all payroll tax, PAYG, and leave liability.

How is STP reported to the ATO?

By law, a business must ensure that all salary, wage, PAYG and superannuation details are sent to the ATO every time an employer pays them. The method of reporting can be directly from STP-enabled payroll software, or through a third party who can act as an external service provider and will report on your behalf.

If you don’t have accounting or payroll software that offers STP, there are still alternative options such as applying to the ATO for more time to get ready, using the ATO’s online forms to apply for a deferred start date, or asking the ATO for an exemption if you live in an area with intermittent or no internet connection.

If your business doesn’t yet have STP compliant payroll software, and is not meeting payroll obligations surrounding STP and EOFY processing, get in touch with a payroll expert to help manage your compliance.

For employees, an STP enables them to see their year-to-date super information on the ATO’s online service, accessed through myGov. Once these details are reported and finalised through STP, employees or their registered agent will be able to lodge their tax return using the STP information available from the ATO. This is called an income statement.

What is STP phase 2?

STP Phase 2 came into effect on 1 January 2022. This change required additional information to be reported to the ATO which will enable them to leverage the STP infrastructure. STP Phase 2 involves the capture of the payment classifications such as leave, allowances, overtime, cessation details, salary sacrifice, lump sums, and country codes for working holiday makers.

It is also required to separately itemise the components which make up the gross amount which includes bonuses, directors fees, paid leave, salary sacrifice, overtime and allowances. This also helps the ATO to determine whether employees have been deducted the correct amount of tax from their wages, based on the types of payment they have received.

How payroll works

Our payroll service starts with the preparation of your plan by calculating your payroll based on the relevant information and data.
Following preparation, your Payroll Business Partner  will review all relevant data, ensuring accurate Award Interpretation and compliance. It’s during this stage that our client’s review all their payroll, and provide further adjustments or approval.

Next, your Payroll Partner  will ensure your EFT files are generated, your General Ledger and post payroll reports are provided, and your STP is lodged.

Lastly, to keep the process transparent, accurate, and streamlined, your Payroll Partner  will offer continued business support with payroll queries, system queries, superannuation updates, processing and monthly reporting, as well as all payroll tax, PAYG, and leave liability.

How is STP reported to the ATO?

By law, a business must ensure that all salary, wage, PAYG and superannuation details are sent to the ATO every time an employer pays them. The method of reporting can be directly from STP-enabled payroll software, or through a third party who can act as an external service provider and will report on your behalf.

If you don’t have accounting or payroll software that offers STP, there are still alternative options such as applying to the ATO for more time to get ready, using the ATO’s online forms to apply for a deferred start date, or asking the ATO for an exemption if you live in an area with intermittent or no internet connection.

If your business doesn’t yet have STP compliant payroll software, and is not meeting payroll obligations surrounding STP and EOFY processing, get in touch with a payroll expert to help manage your compliance.

For employees, an STP enables them to see their year-to-date super information on the ATO’s online service, accessed through myGov. Once these details are reported and finalised through STP, employees or their registered agent will be able to lodge their tax return using the STP information available from the ATO. This is called an income statement.

What is STP phase 2?

STP Phase 2 came into effect on 1 January 2022. This change required additional information to be reported to the ATO which will enable them to leverage the STP infrastructure. STP Phase 2 involves the capture of the payment classifications such as leave, allowances, overtime, cessation details, salary sacrifice, lump sums, and country codes for working holiday makers.

It is also required to separately itemise the components which make up the gross amount which includes bonuses, directors fees, paid leave, salary sacrifice, overtime and allowances. This also helps the ATO to determine whether employees have been deducted the correct amount of tax from their wages, based on the types of payment they have received.

Why outsource payroll?

Our managed payroll service is flexible and offers tailored plans to cover your business’s needs, with a scalable pricing model that can adapt alongside your business. Backed by advanced payroll software, our outsourced payroll solution includes end-to-end support from a dedicated payroll business partner, all the way from implementation to management.

We ensure that your employees are paid accurately and on time, while leveraging state of the art payroll software with pre-built Award Interpretation, while taking into consideration your business unique agreements. Our expert payroll partners can help your business navigate all the complexities surrounding award conditions, update awards in line with legislative changes, and payroll audits.

Our Payroll Business partners are aware of all regulation changes, amendments, or updates, allowing your business to stay ahead of all compliance laws. This includes payroll and tax regulations, wage and labour laws, and continuous Award review. Your financial safety is at the top of our list across all areas of business, which is why our systems, processes, and management team ensure that all your data is secure and protected.

Why outsource payroll?

Our managed payroll service is flexible and offers tailored plans to cover your business’s needs, with a scalable pricing model that can adapt alongside your business. Backed by advanced payroll software, our outsourced payroll solution includes end-to-end support from a dedicated payroll business partner, all the way from implementation to management.

We ensure that your employees are paid accurately and on time, while leveraging state of the art payroll software with pre-built Award Interpretation, while taking into consideration your business unique agreements. Our expert payroll partners can help your business navigate all the complexities surrounding award conditions, update awards in line with legislative changes, and payroll audits.

Our Payroll Business partners are aware of all regulation changes, amendments, or updates, allowing your business to stay ahead of all compliance laws. This includes payroll and tax regulations, wage and labour laws, and continuous Award review. Your financial safety is at the top of our list across all areas of business, which is why our systems, processes, and management team ensure that all your data is secure and protected.

Explore all our payroll services

Award Interpretation

Our Payroll Officers can help your business identify all relevant Awards to their industry, ensuring peace of mind and continued compliance.

Payroll Management Services

Employment Innovations offers scalable payroll services that ensure comprehensive implementation of employee payroll management.

Payroll Compliance

Through managed payroll, our team of experts ensure all of your accounts are accurate, compliant, and following current legislation.

STP Payroll & EOFY Processing

Stay on top of STP Payroll and EOFY Processing with a local payroll expert managing your account.

Explore all our payroll services

Award Interpretation

Our Payroll Officers can help your business identify all relevant Awards to their industry, ensuring peace of mind and continued compliance.

Payroll Management Services

Employment Innovations offers scalable payroll services that ensure comprehensive implementation of employee payroll management.

Payroll Compliance

Through managed payroll, our team of experts ensure all of your accounts are accurate, compliant, and following current legislation.

STP Payroll & EOFY Processing

Stay on top of STP Payroll and EOFY Processing with a local payroll expert managing your account.

FAQs

Questions?

We have answers.

What STP data does the Australian Tax Office need?

The ATO requires businesses to report the year-to-date (YTD) values of gross salary or wages, allowances or other payments, deductions, and PAYG withholding for each employee included in every pay event.

What employee payroll information is used for STP?

STP will provide all relevant information to the ATO which includes the employee’s employment type, their tax file number, salaries and wages payments, pay as you go (PAYG) withholding, and any superannuation liability information.

Does a Managed Payroll service include STP reports?

Yes, when you outsource your payroll with Employment Innovations, our payroll experts will ensure that all relevant STP reports are accurately kept and sent to the ATO in accordance with all compliance legislation.

What are closely held payees and closely held employees?

A closely held payee is an individual directly related to the entity from which they receive payments. A closely held employee is another term for a closely held payee, and refers to the same matter.

How do my employees get their payment summary with STP?

Payment summaries have become obsolete with the introduction of STP. Employees will now receive an Income Statement at the end of the financial year once the payroll is finalised, which they can access through their MyGov account.

Looking for a tailored payroll solution?

To organise a free demo of our payroll software, or to find out more about our payroll outsourcing services, just fill out the form below and we’ll be in touch.