Single Touch Payroll. Are you ready?
Single Touch Payroll
Single touch payroll is designed to streamline your payroll reporting. Instead of reporting your payroll information either monthly or quarterly on your BAS/IAS, you will now report this information to the ATO when you pay your employees. You can do this through your existing payroll software (such as accounting software) as long as it is updated to offer Single Touch Payroll reporting. Payroll software providers are updating their products now.
When do I need to get ready?
- If you have 20 or more employees you will need to report through Single Touch Payroll from 1 July 2018.
- If you have 19 or less employees, you will need to report through Single Touch Payroll from 1 July 2019.
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, you will need to update your software when its ready and start Single Touch Payroll reporting from 1 July 2018
- The headcount is a self-assessment. You do not need to notify the ATO of your employee numbers.
Talk to your software provider:
- Ask them when and how your product will be updated to offer Single Touch Payroll reporting.
If you do not have a payroll solution, choose one that offers Single Touch Payroll reporting:
- Talk to us about the best product to suit your needs.
- If you are unable to report using your own software, get in touch and we may be able to lodge on your behalf.
Want more information?
The ATO have some great information and videos on their website to help you understand Single Touch Payroll. To find out more click here.