From 1 July 2018, employers with 20 or more employees will be required to prepare their ATO reporting obligations for employees’ tax and superannuation information in real time under the Single Touch Payroll reporting regime.
DOES SINGLE TOUCH PAYROLL APPLY TO YOU?
The ATO requests employers begin to prepare for Single Touch Payroll by considering whether, on 1 April 2018, the entity was a “substantial employer”, that is an employer with a headcount of 20 or more employees.
It is mandatory for substantial employers to report under the new regime. When considering the number of employees, we must include full-time, part-time and casual employees as well as any employees absent or on leave (whether paid or unpaid) or based overseas. Employers do not need to consider independent contractors, staff hired by a third party labour hire organisation or company directors.
HOW TO REPORT WITH SINGLE TOUCH PAYROLL
To meet the regime the employers can report payroll obligations using their own payroll or accounting software that is compatible to Single Touch Payroll reporting, by obtain a new payroll software that is Single Touch Payroll ready or alternatively ask a third party (ie. your tax agent) to report on your behalf.
THE FUTURE OF SINGLE TOUCH PAYROLL
Although Single Touch Payroll may not yet apply to your employer entity at this stage, from 1 July 2019 (subject to legislation passing in parliament) all employers, regardless of size, will be required to report under the regime. To ensure you are ready for this change we recommend you download the latest versions of your software and contact your accounting software provider.
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