Single Touch Payroll is coming. How will it affect you?
Single Touch Payroll is coming. How will it affect you?
The ATO is making changes to the way employers report information. Single Touch Payroll introduces the electronic reporting of payroll data to the ATO directly from your payroll system when you pay your employees.
Who does this change apply to?
If you have 20 or more employees on 1 April 2018, Single Touch Payroll will apply to you from 1 July 2018. It is expected that single touch payroll will apply to employers with 19 or fewer employee from 1 July 2019.
Do I have to move to Single Touch Payroll?
Yes. Single Touch payroll is a compulsory change.
How do I prepare for Single Touch Payroll?
Your payroll system will need to be updated to support Single Touch Payroll. The ATO is working closely with payroll software and solutions providers to introduce Single Touch Payroll to their products and services.
If you currently report payroll manually you will need to change to a Single Touch Payroll enabled method unless the ATO grants you an exemption. Please contact us to discuss your options.
Will I still need to report wages on my Business/Instalment Activity Statement and prepare payment summaries once I begin reporting through Single Touch Payroll?
The ATO will fill in the payroll information on your Business/Instalment Activity Statements for you based on the data reporting through Single Touch Payroll. You will not be required to issue a payment summary to your employees or prepare a Payment Summary Annual Report for the ATO if you are using Single Touch Payroll.
I heard my Payroll Software may not be ready for Single Touch Payroll in time. What do I do?
The ATO may defer the date you are required to start if your payroll solution will not be ready by 1 July 2018. If you will require a deferral please contact us to request a deferral on your behalf.
If you require assistance with any of the changes with Single Touch Payroll or the Small Business Superannuation Clearing House please call us to make an appointment.