New payroll reporting just a tap away

Published on Apr 10, 2018

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New payroll reporting just a tap away

 

The Australian Taxation Office (ATO) isintroducing single touch reporting for your staff wages and salaries, superannuation and withholding.

 

The change will be mandatory for businesses with 20 or more employees from 1 July 2018.

 

The website states employers will need to report directly from their ‘payroll solution’, but what does this little phrase actually mean?

 

Your ‘payroll solution’ is either your software provider, for example, MYOB, Xero or Sage, or a third party such as a tax professional or a payroll service provider who handles payroll for your business.

 

Once your payroll solution has updated their software and incorporated the Single Touch Payroll feature, they will let you know it is ready to use.

 

If your payroll solution update their software before 1 July, there is no reason you can’t start using Single Touch Payroll before 1 July.

 

The feature is designed to make reporting easier and ensures that wages and superannuation information is sent to the ATO every time you pay your employees.

 

However, it doesn’t mean you need to change your pay cycle, alter your arrangements with your payroll service provider or change software. Single Touch Payroll is designed to fit into your current arrangements.

 

The ATO is accepting deferred start dates for payroll service providers who need more time to update their products. Check with your service provider to see if your product has a deferred start date. If so, you will not need to start using Single Touch Payroll until your service provider have updated their software.

 

Some businesses may not be ready to use Single Touch Payroll by 1 July 2018, even if their service provider has updated the software and provided the update to the business. If you think this situation may apply to you, contact the ATO to apply for a deferred start date for your business.

 

Businesses with 19 or fewer employees will not be required to use Single Touch Payroll until 1 July 2019 at this stage, however if your payroll solution is ready before that date, you can start using Single Touch Payroll if you choose.

 

Visit the ATOs Single Touch Payroll to access guides about how to make the change or see the Webinar schedule to plug in and learn more.

 

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