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 from1 July 2018 for employers with 20 or more employees.You will report payments such as salaries and wages,
pay as you go (PAYG) withholding and super information
to the ATO when you pay your employees.
You can do this through your existing payroll software (such
as xero, myob or quickbooks) as long as it is updated to offer
Single Touch Payroll reporting. Payroll software providers are
updating their products now.
If you have 20 or more employees you will need to report
through Single Touch Payroll from 1 July 2018. The first
year will be a transition period and penalties may not apply.
If you have 19 or less employees, you will need to report
through Single Touch Payroll from 1 July 2019, 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.
ATO will make that information available to employees
through myGov. You will have the option to invite your employees to
complete Tax file number declaration, Superannuation
standard choice form and Withholding declaration online.
This feature will not be available immediately.
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 do I get ready?
Count the employees who are on your payroll on
1 April 2018. If you have 20 or more, If you are using xero or an equivalent package, the software will be automatically updated and ready for your first payrun in the new financial year.
If you are using xero for your payroll, xero has more information and help videos to access here