Single Touch Payroll
/If you have 20 or more employees, from 1 July 2018 you will need to report through Single Touch Payroll. This is now Law!
If you have 19 or less employees, Single Touch Payroll reporting will be optional until 1 July 2019. It will be mandatory from that date (subject to Legislation being passed in Parliament).
To find out if you need to be ready by 1 July 2018, you will need to do a headcount of the employees you have on your payroll on 1 April 2018.
Who to include in your headcount:
- full-time employees
- part-time employees
- casual employees who are on your payroll on 1 April and worked any time during March
- employees based overseas
- any employee absent or on leave (paid or unpaid)
- seasonal employees (staff who are engaged short term to meet a regular peak workload, for example, harvest workers).
Do not include:
- any employees who ceased work before 1 April
- casual employees who did not work in March
- independent contractors
- staff provided by a third-party labour hire organisation
- company directors
- office holders
- religious practitioners
When you pay your employees through your Single Touch Payroll enabled solution you will be reporting (directly from your payroll) the following to the ATO at the same time:
- salaries and wages
- allowances
- deductions (e.g. workplace giving and other payments)
- pay as you go (PAYG) withholding
- superannuation information
Your payroll cycle will not change, nor will your due date for PAYG Withholding and Super contributions.
Software providers are updating their products now. You should make contact with them to find out when and how your product will be updated.
If you would like to discuss “Single Touch Payroll” further or any other business/tax related matter, please contact our office.