Single Touch Payroll is the next step in streamlining your payroll reporting. It will change the way you report your employees’ payroll information to the ATO. It starts from 1 July 2018 for employers with 20 or more employees. Single Touch Payroll will be expanded to include employers with 19 or less employees from 1 July 2019. This is subject to legislation being passed in parliament.
What does it mean?
■ 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.
■ 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. However, you can choose to pay earlier.
■ You may not need to provide your employees with a payment summary at the end of financial year for certain payments you report through Single Touch Payroll. 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.
How to get ready?
· Count the employees who are on your payroll on 1 April 2018.
■ If you have 20 or more, you will need to update your software when it’s ready and start Single Touch Payroll reporting from 1 July 2018.
■ The headcount is a self-assessment. You do not need to notify the ATO of your employee numbers.
· Talk to your software provider.
■ Ask them when and how your product will be updated to offer Single Touch Payroll reporting.
■ Some payroll software providers have asked us for more time to get ready. Ask them if they have been given a later start date by the ATO (a deferral). If you do not have a payroll solution, choose one that offers Single Touch Payroll reporting.
■ If you have 20 or more employees and do not use a payroll solution, you will need to choose one that offers Single Touch Payroll and start reporting from 1 July 2018.
· Please contact your RCB Team member as we can assist you with managing this change.
Source: https://www.ato.gov.au/Business/Single-Touch-Payroll/
