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4 options for Single Touch Payroll compliance

2 February 2018Accountants & Advisors, Payroll, Payroll Efficiency, Single Touch Payroll

There are four options to meet your Single Touch Payroll reporting obligations. Regardless of which you choose, the Australian Taxation Office compliance deadline is 1 July 2018.

The deadline for Single Touch Payroll compliance is 1 July 2018. The Australian Taxation Office (ATO) has made it clear that it will not extend this deadline. If you have 20 or more employees, you should now have a plan in place for how you will comply with this new legislation.

There are four options to meet your compliance obligations:

  1. Upgrade to a Single Touch Payroll compliant solution from your existing payroll software provider.
  2. Upgrade to a Single Touch Payroll compliant solution from a new payroll software provider.
  3. Stay with your non-compliant payroll solution and apply for an exemption from the ATO.
  4. Stay with your non-compliant payroll solution and apply for a deferral from the ATO.

1. Upgrade to a Single Touch Payroll compliant solution from your existing payroll software provider

You should do this now. If your existing payroll software provider has not yet released their solution, ensure that you still upgrade to the latest version to minimise the final upgrade path to Single Touch Payroll compliance.

2. Upgrade to a Single Touch Payroll compliant solution from a new payroll software provider

Attaché Payroll is STP-compliant and available now. It tightly integrates with Attaché Online which provides the data link to the ATO.

3. Stay with your non-compliant payroll solution and apply for an exemption from the ATO

The ATO may grant you an exemption from Single Touch Payroll reporting if:

  • you are located in a rural area with no reliable internet connection, or
  • you only have 20 or more employees for a short period of the income year, for example, due to harvesting activities.

4. Stay with your non-compliant payroll solution and apply for a deferral from the ATO

The ATO may defer your start date for Single Touch Payroll reporting if:

  • your payroll solution will not be ready for Single Touch Payroll reporting by 1 July 2018
  • you have entered administration or liquidation
  • you have been impacted by a natural disaster
  • you are affected by a circumstance outside your control.

Read more about exemptions and deferrals.

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