Are you ready for the ATO Payroll Changes for Employers with 20 or more Employees

Tuesday, 5 June 2018   

Are you ready for the ATO Payroll Changes for Employers with 20 or more Employees

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.

The 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