Single Touch Payroll is a government initiative to streamline how employers report their tax and superannuation information. Employers will be able to report salary or wages, PAYG withholding and super information directly to the ATO at the same time as they pay their employees.
If you have 20 or more employees, you should start thinking about Single Touch Payroll. You’ll be required to report payroll and super information to the ATO using a Single Touch Payroll enabled payroll solution from 1 July 2018. Visit ato.gov.au/singletouchpayroll for more information.
The ATO is currently working with Payroll software vendors to ensure their systems will be ready to support Single Touch Payroll from 1 July 2018 – if you have 20 or more employees you should be reaching out to your software provider now to determine their timeline for becoming compliant to allow you to plan for this transition.
For businesses with less than 20 employees, Single Touch Payroll will be optional, however the below are some of the benefits to moving to a compliant payroll system:
From our point of view this new process will streamline business processes freeing up valuable time by automatically reporting information to the ATO, and will be especially useful at the end of financial year by removing the need to produce Payment Summaries and report this information to the ATO.
If you would like to have a discussion about the advantages of these changes, or to confirm if your existing Payroll solution is compliant (or you would like to move to a compliant system) please email me today – email@example.com
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