Single Touch Payroll is a Government initiative aimed at cutting red tape and improving the visibility of reporting of the wages and salary, PAYG withholding and Superannuation by employers.
Single Touch Payroll will be compulsory for ALL employers from 1 July 2019 (regardless of size).
The move to Single Touch Payroll sets a new standard for reporting. You may be familiar with filling in forms at the end of month, quarter or year. With these changes you’ll be required to report your payroll in real time direct to ATO.
Your Current Payroll System:
Your current payroll system might be a combination of cashbook, spreadsheets and paper files. Your wages are calculated and reported on manually. In some instances staff may or may not get a payslip.
Your Future Payroll System:
As of July 1 2019, all employers will be required to use a cloud-based payroll system to report to the ATO.
Cloud Based Payroll Software
Real time payroll information will be sent direct to ATO from you at the time your payroll is run.
How Will It Work:
Single Touch Payroll software will automatically extract information from your payroll system, at the same time your payroll is run, and pass it to the ATO.
You will be required to use Single Touch Payroll compliant software as part of your payroll run.
1. You Run Your Payroll
You run your payroll internally as per your normal payroll frequency. This information will be managed within your new payroll software
2. Approve
When you run your payroll, someone within the company will approve the information as being accurate.
3. Automatic Upload
Your payroll information will automatically be uploaded to the ATO’s systems.
4. Reporting
The ATO will be able to monitor in real-time employer remittances as well as make this information available to employees via myGov.
What Are The Benefits:
Single Touch Payroll will bring about more efficiency within your business. No more cashbooks or manual calculations.
Making your payroll easier to manage and automated.
- Removal of the need to issue annual payment summaries.
- Removal to lodge payment summary annual report.
- Automatic completion of Labels W1 in BAS.
- Streamlining of employee documentation
- New employees can complete TFN and Super Choice forms online