Last year, the Australian Taxation Office (ATO) announced upcoming changes to tax and super reporting and from 1 July 2018, employers with 20 or more staff will be required to use Single Touch Payroll. Businesses with less than 20 employees have a proposed start date of 1 July 2019.
What is Single Touch Payroll?
Single Touch Payroll is enabled software that changes how employers report their wages, PAYG and super contribution information to the ATO. From 1 July 2018, employers who meet the requirements will need to report on this information once payroll has been processed instead of reporting monthly or quarterly. The good news is that reporting will be automatic from your payroll software, and you will not need to prepare PAYG Payment Summaries when you are using Single Touch Payroll.
As a business owner, what do I need to do?
- If you haven’t already, your payroll solution will need to be updated for Single Touch Payroll and be operational by 1 July 2018, so you can report on:
- Payments to employees such as salaries and wages;
- Pay as you go (PAYG) withholding; and
- Super information.
If needed, you can use a third party provider service, such as our bookkeeping service to report through Single Touch Payroll on your behalf.
- You will need to report the above information to the ATO at the same time you pay your employees and in preparation for this, you will need to:
- Conduct a headcount of the number of employees you have on 1 April 2018 to confirm whether you need to transition to Single Touch Payroll. If you have at least 20 people on staff at 1 April, you will need to use Single Touch Payroll. .
If you are concerned about whether your business needs to comply with Single Touch Payroll, aren’t sure how this works with your payroll software or need assistance with implementing new software, please contact us on (07) 4632 1966. Alternatively, for more information about Single Touch Payroll, visit the ATO’s website.