Over the last several months the Australian Tax Office has been communicating with businesses on the Single Touch Payroll changes coming into effect on July 1, 2018. This is a concern for many employers as there is a lot of uncertainty about what the changes will involve and how it will impact their business.
What is Single Touch Payroll?
Simply put, Single Touch Payroll means that Salaries and Wages, PAYG and Superannuation information is reported to the Australian Tax Office directly from your payroll software.
For companies employing 20 or more employees (‘substantial employer’), Single Touch Payroll reporting will start from July 1, 2018. This will be optional for companies employing less than 20 employees, however, it may become mandatory from July 1, 2019, pending legislation.
What does this mean for employers?
You will be able to continue with your current pay cycles. Upon completion of each pay, the relevant pay information (Salaries and Wages, Allowances, Deductions (e.g. Workplace Giving), other payments, PAYG and Superannuation information) is reported to the ATO.
To find out if you need to be ready by then, you will need to do a headcount of the employees you have on your payroll on 1 April 2018.
This will require your payroll software to be updated for Single Touch Payroll reporting. MYOB investing heavily in Single Touch Payroll and actively working with the ATO to ensure all MYOB payroll products (MYOB Essentials, MYOB AccountRight, MYOB PayGlobal, MYOB Greentree, MYOB Exo Payroll, MYOB Advanced People) are Single Touch Payroll compliant from July 1, 2018.
What will this mean for your employees?
Employees will be able to view up-to-date information through their myGov portal, including year-to-date pay, tax and superannuation information. By reporting this information to the ATO via Single Touch Payroll, employers will not have to provide employees with PAYG Payment Summaries as the information will be available via myGov.
Where can I find out more information about Single Touch Payroll?
More information is available from the ATO’s website. Kilimanjaro Consulting will keep their clients appraised as new information becomes available from the ATO as well as product updates from MYOB.
For the most frequently asked questions and important dates, visit our FAQ page.