Fortunately, if you already use one of the mainstream accounting software packages (e.g. Xero, MYOB, QuickBooks Online) then the functionality to handle single touch payroll should already be available to you.
I've heard the term single touch payroll a lot lately, but I haven't really thought about whether it applies to me or what I need to do to get ready for it. Can you tell me what single touch payroll is all about, whether it will affect me and what I need to do to prepare for its introduction?
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If you're in business and haven't heard of single touch payroll then I'd be a bit worried at this point, as there has been plenty of coverage for quite some time now.
If you're still not across it though it's still not too late to get your business ready.
Single touch payroll is a concept introduced by the ATO where businesses are required to submit payroll information to the ATO every pay cycle, with this information including things like gross pay, tax withheld, superannuation and other information.
All of this information is uploaded to government systems and then becomes accessible via the employee's myGov account.
The system was introduced to address perceived compliance issues for many employers, with a significant number of employers not meeting their obligations in a range of areas including issuing payslips and reporting and paying tax and super obligations.
It's thought that the system is designed to give government agencies and employees access to more accurate and timely information so that prompt action can be taken if employers fail to do the right thing.
Single touch payroll, or STP, became compulsory for businesses with 20 or more employees from July 1, 2018, and will be compulsory for employers with fewer than 20 employees from July 1, 2019.
If you have fewer than 20 employees and haven't taken action on single touch payroll yet, you only have until June 30, 2019, to prepare.
Fortunately, if you already use one of the mainstream accounting software packages (e.g. Xero, MYOB, QuickBooks Online) then the functionality to handle single touch payroll should already be available to you.
You will just need to get it set up, and from then on it should be a case of simply submitting the data to the ATO through the software each pay cycle.
If you're not using a mainstream accounting software package then you'll need to take action now to implement one. Alternatively, if you have fewer than four employees you can have your accountant attend to lodgement of the data for you for an initial period.
If you'd like to discuss single touch payroll, please contact your accountant or Findex on albury@findex.com.au.
