Employers urged to act now for Single Touch Payroll
The Australian Tax Office (ATO) is urging employers with 20 or more employees to prepare for the introduction of Single Touch Payroll.
Single Touch Payroll will be introduced from 1 July 2018, requiring employers to report their employee’s tax and super information to the ATO through Single Touch Payroll approved software.
Employers will report each time they pay their employees, i.e., weekly, fortnightly or monthly. The information that will be reported includes withholding amounts, superannuation liability information or ordinary times earnings (OTE) and salary, wages, allowances and deductions.
Single Touch Payroll will provide greater transparency and connect businesses to the ATO through their existing software.
Employers must prepare by organising the following:
– A headcount of employees on 1 April 2018 to determine if there is 20 or more. If your numbers drop down to 19 or less, you will still continue to report through Single Touch Payroll unless you apply for and are granted an exemption.
– Talk to your software provider about how and when your product will be ready.
– Those without a software provider will need to find a provider that offers Single Touch Payroll.
– Update your payroll software when it’s ready.
– Start using Single Touch Payroll.
Employers with 19 or less employees have until 1 July 2019 to prepare, however they can start reporting as soon as their software is updated.