Will your payroll software be ready by 1 July 2018?
Is your business ready for Single Touch Payroll?
Single Touch Payroll is a reporting change which will require employers to report employee payments such as wages, PAYG Withholding and superannuation to the ATO directly from their payroll software at the time they pay their employees.
This change will become mandatory for employers with over 20 employees as of 1 July 2018.
Small business employers with less than 20 employees will need to be ready from 1 July 2019.
How and when do I determine the number of employees I have?
You will need to count the number of employees on your payroll on 1 April 2018 to find out if you are a ‘substantial employer’. You need to do a headcount, not a count of your full time equivalents (FTE).
If you have 20 or more employees on 1 April, you will be a 'substantial employer' and will need to report through Single Touch Payroll from 1 July 2018.
Once you are a substantial employer you will be required to continue reporting through Single Touch Payroll even if your employee numbers drop below 20.
What does this mean for you now?
Your payroll software will need to be updated for Single Touch Payroll reporting as at 1 July 2018.
If you don’t have current payroll software, you will need to choose a payroll solution that is Single Touch Payroll-enabled and suits your business needs.
Many payroll software and service providers will be updating their products. You will be able to check when your software is Single Touch Payroll-enabled in the product catalogue on the Australian Business Software Industry Association (ABSIA) website. Over time, this catalogue will be updated with information about payroll solutions that are Single Touch Payroll-enabled.
If you would like to discuss the implications Single Touch Payroll will have on your business please contact us on 6621 2257.
This information and the links provided are for general advice only and do not take into account your specific situation and, accordingly, should not be taken as constituting professional advice.