Single Touch Payroll Just Launched in Australia! Effective from 1st July 2018
Starting from July 2018. The ATO will be introducing a new system called "Single Touch Payroll".
This will be the next step in Payroll reporting, this will only affect employers who have 20 or more employees.
What will be reported?
* Payment information including salary or wages, allowances, deductions
* Pay as you go (PAYG) withholding
* Superannuation liability information or ordinary times earnings (OTE)
This will be reported each time you pay your employees.
This can be done via your existing Payroll Software (such as accounting software) but you need to make sure that it is updated to offer Single Touch Payroll reporting.
When do you need to get ready for the change?
* 1st July 2018 - If you have 20 or more employees . ( This is known as a transition period and penalties may not apply)
* 1st July 2019 - If you have 19 or less employees. * Subject to legislation being passed in parliament.
Important Info
* Your payroll cycle will not change. You can still pay your employees weekly, fortnightly or monthly.
* Your payment due date for PAYG withholding and super contributions will not change. You can choose to pay earlier.
* When you start reporting through Single Touch Payroll you will send your employees payroll and super information to the ATO from your payroll solution each payday.
* This could mean that you may not need to provide your employees with a payment summary at the end of the financial year. The ATO will make that information available to employees through myGov.
* When you report to the ATO through Single Touch Payroll, your employees will be able to view their year to date tax and super information through myGov.
What to do next?
1. Find out how many employees you have on your payroll.
You need to include
Full time Employees
Part Time Employees
Casual Employees who are on your payroll on 1'st April and worked any time during March
Employees Based Overseas
Any employee absent or on leave ( Paid or unpaid )
Seasonal Employees ( staff who are engaged in Short term work )
Do not include any employees who ceased work before 1 April, casual employees who did not work in March, independent contractors, staff provided by a third party labour hire organisation, company directors, office holders or religious practitioners.
If you have 20 or more then you need to update your software. Do this by talking to your software provider.
2. Find out when and how your product will be updated to offer Single Touch payroll reporting.
Please note: Some payroll software providers have been given a later start date by the ATO ( a deferral)
If your software does not offer Single Touch Payroll reporting then talk to your registered Tax Accountant about the best product to suit your needs or simply let your accountant report the Single Touch payroll to the ATO on your behalf.
Please contact Buildersbooks or Dolman Bateman if you need more information, our registered Chartered Accountants will be able to assist you further with the transition.
Disclaimer
This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice.
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