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Single Touch Payroll (STP) in 2024: What You Need to Know and How Deel Can Help
Navigating payroll compliance can be challenging, especially with evolving regulations like Single Touch Payroll (STP) in Australia. As businesses expand globally, understanding STP and integrating it with a global payroll solution like Deel becomes crucial. In this blog, we’ll explore everything you need to know about STP and how Deel can simplify your payroll management across borders.
What is Single Touch Payroll (STP)?
Single Touch Payroll (STP) is an Australian government initiative designed to streamline payroll reporting. Introduced by the Australian Taxation Office (ATO), STP requires employers to report employee payroll information, such as salaries, wages, PAYG withholding, and superannuation, directly to the ATO each time they run their payroll. This process ensures that employee data is reported in real-time, improving transparency and accuracy.
How Does Single Touch Payroll Work?
Under STP, employers use payroll or accounting software that is STP-compliant to send payroll data directly to the ATO. This data includes information about:
Employee salaries and wages
PAYG withholding amounts
Superannuation contributions
Every time you pay your employees, this data is automatically sent to the ATO, reducing the need for manual reporting at the end of the financial year. STP also simplifies the process for employees, as they can access their payroll information directly through their myGov account.
Who Needs to Comply with STP?
Initially, STP compliance was mandatory only for businesses with 20 or more employees. However, since July 1, 2019, all employers in Australia, regardless of size, are required to comply with STP regulations. This includes small businesses, micro-employers, and those with closely held payees.
Benefits of Single Touch Payroll
1. Improved Accuracy and Transparency
STP ensures that payroll data is reported accurately and in real-time, reducing the chances of errors and discrepancies in payroll reporting.
2. Simplified End-of-Year Reporting
With STP, end-of-year reporting is simplified as most of the data is already reported throughout the year, eliminating the need for group certificates or payment summaries.
3. Enhanced Employee Access
Employees can easily access their payroll information through their myGov account, which is continuously updated with each payroll cycle.
4. Compliance Made Easier
STP ensures that businesses comply with Australian tax laws, minimizing the risk of penalties and legal issues related to payroll reporting.
How Deel Simplifies Global Payroll Compliance
As businesses expand internationally, managing payroll across different jurisdictions becomes more complex. Deel is a global payroll and compliance platform that simplifies this process, especially for businesses operating in multiple countries.
Deel’s Global Payroll Features
Feature | How Deel Helps |
Global Compliance | Deel ensures compliance with local payroll regulations in over 150 countries, including STP in Australia. |
Automated Payroll Processing | Deel automates payroll processing, ensuring accurate and timely payments across multiple countries. |
Localized Tax and Compliance Management | Deel manages local tax regulations, withholding, and compliance for each country, reducing administrative burdens. |
Contractor Management | Deel provides tools to manage international contractors, including contract creation, compliance, and payment. |
Easy Integration | Deel integrates with popular HR and accounting software, making it easy to sync payroll data across platforms. |
Transparent Pricing | Deel offers clear, upfront pricing with no hidden fees, making it easier to manage costs for global payroll. |
Comparing STP with Deel’s Global Payroll Solution
While STP is an excellent initiative for businesses operating in Australia, it’s important to consider how your payroll processes will be managed on a global scale. Below is a comparison of STP and Deel’s global payroll solution:
Aspect | Single Touch Payroll (STP) | Deel |
Scope | Australia-specific payroll reporting requirement. | Global payroll solution supporting 150+ countries. |
Compliance | Ensures compliance with Australian payroll laws and ATO reporting. | Ensures compliance with local payroll regulations globally, including Australia. |
Employee Access | Employees can access payroll info via myGov. | Employees and contractors can access their payroll info via Deel’s platform. |
Ease of Use | Requires STP-compliant software and periodic updates. | Intuitive platform with automated processes, reducing manual effort. |
International Payroll | Not applicable—focused on Australian payroll only. | Fully supports international payroll, including currency conversion and local compliance. |
Contractor Support | Limited to Australian tax and payroll regulations. | Comprehensive contractor management globally. |
Why Your Business Should Consider Deel for Global Payroll
While STP is vital for businesses operating in Australia, expanding globally requires a solution that can handle the complexities of international payroll. Deel’s platform is designed to manage these challenges, offering a seamless experience for businesses that need to comply with various regulations worldwide. Whether you're hiring employees or contractors in multiple countries, Deel can simplify your payroll processes and ensure compliance with local laws.
Conclusion: Streamlining Payroll Compliance with STP and Deel
Single Touch Payroll has revolutionized payroll reporting in Australia, ensuring real-time compliance and transparency. However, as businesses grow globally, it’s essential to have a payroll solution that can manage international compliance seamlessly. Deel offers a robust platform that not only supports STP in Australia but also ensures compliance in over 150 countries, making it the perfect partner for businesses looking to expand their global footprint.
Frequently Asked Questions (FAQs)
1. What is Single Touch Payroll (STP)?STP is an Australian payroll reporting system that requires employers to send payroll data to the ATO with each payroll run.
2. Who needs to comply with STP?All employers in Australia, regardless of size, must comply with STP regulations.
3. How does Deel support global payroll compliance?Deel manages local payroll compliance in over 150 countries, ensuring businesses meet all regulatory requirements, including STP in Australia.
4. Can Deel handle both employees and contractors?Yes, Deel provides tools for managing both employees and contractors, including payroll processing, compliance, and payments.
5. Is Deel suitable for businesses operating exclusively in Australia?While Deel excels in global payroll, it also supports businesses in Australia by ensuring STP compliance and offering a streamlined payroll solution.
By integrating Single Touch Payroll with a global platform like Deel, your business can achieve seamless payroll compliance, whether you're operating locally in Australia or expanding internationally.
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