Single Touch Payroll – are you Ready?

Your Payroll will be seen by the ATO ……… All year so get ready now!

 

The ATO has made Single Touch Payroll MANDATORY if you have more than 20 employees from 1 July 2018.

Who?
All businesses with 20 or more employees.
The count happens as of 30 April each year.

What?
You submit payroll and superannuation data to the ATO each “PayEvent”.

How?
Your payroll software should do it all for you.

When?
From 1 July 2018.

Why?
The ATO will gain greater visibility of all employers, enabling earlier activity to ensure the employer is paying their PAYGW and their SGC.

The employer will not be required to provide payment summaries to their employees.

The ATO will prefill tax returns with the payroll information.

The ATO will make the payroll information available to employees all year through myGov.

Future
The ATO will streamline the process for a new employee by automating the Tax File Number Declaration and SuperChoice form into payroll software and myGov.

Note:
The employer’s payroll records are the “source of truth”. Therefore, any amendments to past pays, or any fixes required are updated in the employer’s records and at the next PayEvent the ATO receive the updated information. There is no need to go back and amend past PayEvents.
The employer will still have to “finalise” a payroll year by indicating to the ATO that the information they are now being sent is the final version and can be used for tax returns.