Wednesday, March 21 2018
Single Touch Payroll is a government initiative to streamline business reporting obligations, which is due to become compulsory from 1 July 2018. When a business pays its employees, the payroll information will be sent to the ATO via the business’s payroll software.
Reporting under the Single Touch Payroll (STP) system removes the requirement to issue payment summaries, provide annual reports and tax file number declarations to the ATO. During the first year of its introduction, the ATO says employers will not be liable for a penalty for a late STP report.
Important points to keep in mind for the transition to STP include:
EMPLOYER CHECKLIST TO HELP YOU GET READY
Step 1: Do a headcount of the employees you have on 1 April 2018 - Count the number of employees you have on your payroll on 1 April 2018 to find out if you are a "substantial employer'.'; If you have 20 or more employees on that date you will need to report through STP, (Se overleaf.)
Step 2: Update your payroll solution when it’s ready - Right now, payroll software and service providers are updating their products. A software product catalogue is available on the Australian Business Software Industry Association (ABSIA) website (search for “absia product catalogue”). The catalogue will be updated as payroll solutions are STP-enabled. You may wish to talk to your payroll software or service provider or third party provider for more information about your product, and when it will be ready.
Step 3: Start reporting through Single Touch Payroll - You can start reporting when your payroll solution is ready. Also note that:
EMPLOYEE END-OF-YEAR PAY INFORMATION
If you report an employee's details through STP, you will not have to provide that employee with a payment summary at the end of the financial year. You also won't be required to provide the ATO with a payment summary annual report for those employee's details.
You will need to notify the ATO when the payment summary data is considered final. The ATO will make that information available to employees (and their tax agent) through myGov, and as pre-filled information in their tax return.
WHO IS AND !S NOT AN EMPLOYEE?
The following employees need to be included in the headcount:
When performing the headcount, the following are not included: