SINGLE TOUCH PAYROLL

From 1 July 2018 employers with 20 or more employees will now need to use ‘Single Touch Payroll’ enabled software to report wages, superannuation and PAYG Withholding tax to the Australian Tax Office each pay cycle.

The new rules are proposed to apply to all employers (irrespective of the number of employees) from 1 July 2019.  This is subject to legislation being passed by Parliament.

What will change?

  • At the end of each pay cycle employers will be required to report salary and wage information through ‘Single Touch Payroll’.
  • Employees will now be able to see their year to date salary, wage and superannuation information through their personal myGov account.
  • The ATO will use this information to prefil your periodic activity statements.
  • Employee tax file number declaration and Superannuation standard choice forms will soon be required to be completed online.

What will not change?

  • The payment due date for PAYG withholding and superannuation guarantee payment obligations.
  • Your business pay cycle does not need to change.

How do you get ready for Single Touch Payroll?

Based on the number of current employees on your payroll at 1 April 2018:

If you have 20 or more employees:
  • Ensure your payroll software (i.e MYOB/Xero/Quickbooks) is updated for ‘Single Touch Payroll’
  • If you do not have payroll software that is ‘Single Touch Payroll’ compatible then you will be required to upgrade your software to ensure that you comply with the ATO requirements.
If you have less than 20 employees:
  • There is no mandatory requirement to use ‘Single Touch Payroll’ until 1 July 2019.  However you can chose to use ‘Single Touch Payroll’ software and comply at an earlier date if you so wish.

If you require any further information regarding ‘Single Touch Payroll’ including assistance with software issues, please do not hesitate to contact our office on 03 9629 1433.

2018-03-29T04:58:50+00:00 March 29th, 2018|Announcements, Companies, Corporations, Payroll, Small business, Taxation|Comments Off on SINGLE TOUCH PAYROLL