Single Touch Payroll is a new electronic method for reporting employees’ payroll information to the ATO at the same time as employees are paid.
Employers will report payments such as salaries and wages, pay as you go (PAYG) withholding and super information to the ATO directly from their payroll solution.
As a result, businesses will no longer be required to complete payment summaries at the end of the financial year as it will have already been done and available to employees through myGov.
How Should Businesses Prepare?
The first step is to conduct a headcount of your employees on 1st April 2018.
If you have 20 or more employees on this date, Single Touch Payroll will be mandatory for your organisation from 1st July 2018.
If you have 19 or less employees on this date, then you can volunteer for this more streamlined reporting process, or wait until it becomes mandatory from 1 July 2019 (subject to legislation being passed in parliament).
Employers should check that their current payroll solution is Single Touch Payroll compliant as product upgrades may be required.
For more information download the fact sheet for employers from the ATO. If you have any queries about your payroll processes, please contact us for advice.