In today’s business world, managing employee wages and taxes is not just about paying people on time — it’s about getting it right with the Australian Taxation Office (ATO) too. That’s where Single Touch Payroll (STP) comes in.

STP is a government initiative that requires employers to report employees’ salary, wages, PAYG withholding and superannuation information each time they pay their employees. Instead of waiting until the end of the financial year, this data is now sent to the ATO immediately after each pay run.

🛠 Why STP Matters

• Real-time transparency: The ATO sees your payroll and super information every time you pay employees.

• Employee access: Employees can view their Year-to-Date wages and tax through their myGov accounts anytime.

• Compliance: Late or incorrect reporting can trigger penalties from the ATO — and damage your business reputation.

Whether you have 1 employee or 100, understanding how much tax you should be withholding is essential.

⚠️ The Risk of Not Knowing Your Withholding Tax

Many small business owners still manage wages manually or with spreadsheets. Without payroll software, it’s easy to:

• Underpay or overpay tax

• Fall behind in PAYG withholding obligations

• Accrue penalties and interest charges from the ATO

Even honest mistakes can lead to big consequences over time.

That’s why understanding your withholding amounts is not just helpful — it’s critical.

✅ No Payroll Software? No Problem!

If you don’t use payroll software yet, you still need to accurately calculate:

• Gross wages

• Superannuation contributions

• Tax withheld

• Net take-home pay

To help with this, we’ve created a free, easy-to-use Withholding Tax and Super Calculator!

👉 Use our Tax Calculator here to work out the correct wages and tax for your employees quickly and confidently.

🚀 How Our Calculator Helps You

• Calculate weekly, fortnightly, monthly or annual wages

• Include or exclude superannuation

• Adjust for tax-free threshold or no threshold

• View gross, tax, super, and net income easily

• Ready for printing and record-keeping

Stay compliant. Stay stress-free.

Save yourself time and headaches by using the right tools.

🔔 Final Tip

Even if you’re a small employer, STP reporting is mandatory.

If you’re not sure how to start with STP or payroll, or need professional advice, Linix Accountants is here to help.

Need help setting up STP or managing payroll?

📞 Call us today at (02) 9100 0555 or 📧 email dons@linixaccountants.com.au.