Single Touch Payroll (STP) begins for most employers on 1 July 2019. From that date, all employers must send their payroll data electronically to the ATO every time they pay employees.
If employers do not presently have payroll software the ATO will not force them to purchase it but this does not mean that these employers will be exempt from the reporting requirements. The ATO has not yet decided on the reporting options for these employers but it will provide more information in the near future. Some possible options might be a portal or a phone app, a payroll service or the introduction of inexpensive payroll reporting software (under $10 per month). Whatever the options it appears that they all involve the digital world. Photocopying a manual wages book and posting it to the ATO every week is not likely to cut the mustard.
Employers must report not only the current pay run but also year to date gross values of wages, allowances, deductions and PAYG withholding tax for each employee.
Employers must also report all employee superannuation liabilities. The ATO can check these with information from superannuation funds. Presently employers can fly under the radar to some extent if they do not pay super guarantee on time. It appears that from 1 July this will not be possible. The ATO net is tightening. The ATO will also be able to identify employers who do not remit PAYG Withholding payments on time. Recent estimates indicate the about $2.5 billion per year is not remitted.