With Single Touch Payroll being introduced this year, employers will be required to report payments such as salaries and wages, pay as you go (PAYG) withholding and super information to the Australian Taxation Office (ATO) directly from their payroll solution at the same time they pay their employees.
The ATO is advising that employers may need to update their payroll solution to report through Single Touch Payroll.
Single Touch Payroll will commence for employers with 20 or more employees from 1 July 2018.
The Australian Government has announced it will expand Single Touch Payroll to include employers with 19 or less employees from 1 July 2019. This will be subject to legislation being passed in parliament.
For the time being, the ATO will continue to provide information to help employers understand what they need to do to get ready for Single Touch Payroll.
The ATO is working closely with payroll software and service providers to help them get ready to offer Single Touch Payroll reporting for their employer clients.
This had been delayed due to a backlash from small businesses, but it appears that this has been ignored by the regulators who have decided to push on with this initiative.
For more information and a free, no-obligation initial meeting, contact your nearest TaxAssist Accountant today.