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With the introduction of the ATO's Single Touch Payroll from 1 July 2018, now is the time to start thinking about its impacts for your business. Single touch payroll will enable employers to report salary or wages, pay as you go (PAYG) withholding and super contributions directly to the ATO at the same time they pay their employees rather than previously reporting monthly or quarterly.
Information for employers
For employers with 20 or more employees, single touch reporting will be mandatory from 1 July 2018. If you have 19 or less employees, Single Touch Payroll reporting will be optional until 1 July 2019. It will be mandatory from that date, subject to legislation being passed in parliament. It’s important to note that you need to do a “headcount” on April 1 2018 to determine if you have 20 or more employees.
How your reporting will change
Your payroll solution will need to be updated for Single Touch Payroll reporting. The ATO are currently working closely with payroll software and service providers to help them get ready to offer Single Touch Payroll reporting for their employer clients.
When you pay your employees through your Single Touch Payroll-enabled solution you will be reporting payments such as their salaries and wages, allowances, deductions and other payments, pay as you go (PAYG) withholding and super information to the ATO at the same time.
Your payroll cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly. You may have different pay cycles for different employees.
It simply means that when you complete your payroll, the tax and super information for each employee will be sent directly to the ATO.
Information for employees
If your employer reports through Single Touch Payroll, you will be able to see more up-to-date tax and super information in ATO Online Services through myGov after 1 July 2018.
When you link your myGov account to the ATO, you can manage your tax and super in one place.
Single Touch Payroll means your employer is able to report to the ATO when they pay you. The information is sent to the ATO directly from their payroll solution.
It may take some time before you see all the information that will be available. Only employers with 20 or more employees are required to start reporting through Single Touch Payroll from 1 July 2018.
The Australian Government has announced it will expand Single Touch Payroll to include employers with 19 or less employees from 1 July 2019. This will be subject to legislation being passed in parliament.
You will be able to see your year-to-date pay, the tax that has been withheld from your pay as well as the super contributions your employer is liable to make for your benefit throughout the year.
If you have any questions regarding the above please do not hesitate to contact our office.