Single Touch PayrollAttaché Payroll is ATO-certified as Single Touch Payroll compliant.
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What is Single Touch Payroll?
Single Touch Payroll is an Australian government initiative that changes the way businesses report on employee payments such as salary or wages, pay as you go (PAYG) withholding and superannuation. It is the biggest payroll reporting change in Australia’s history.
Under Single Touch Payroll, employers need to report employee payments electronically to the ATO with every pay run. It is this direct digital connection to the ATO that is new and requires all payroll systems to be upgraded to accommodate.
Employers with 20 or more employees on 1 April 2018 must conform to these new regulations by 1 July 2018. For those with 19 or less employees, the compliance date is 1 July 2019.
Download your Single Touch Payroll Guide now. It is great for sharing with business owners, key staff and trading partners.
What you can do now
Single Touch Payroll involves more than getting your payroll software upgraded. It impacts many parts of your business including IT, payroll and HR. Your employees are impacted too. You can prepare your business by following our Single Touch Payroll Checklist now. Key highlights include:
Appoint a Single Touch Payroll Champion
We recommend appointing a Single Touch Payroll Champion. Someone within your organisation that is your Single Touch Payroll subject matter expert. They should be business-process driven rather than an IT expert.
Review your payroll software
As Single Touch Payroll requires either an upgrade or replacement of your existing payroll system, the time to review your requirements is now. Remember that payroll is just one module in your suite of business software. The introduction of Single Touch Payroll presents the perfect time to reflect on whether your business systems meet your current requirements and whether there are other time-consuming manual processes that could be automated with a new system.
Get your employees registered on myGov
To access end-of-year payment summaries your employees need to be registered on myGov and linked to the Australian Tax Office (ATO). Getting your employees correctly set up can take months. Our Single Touch Payroll: Employee fact sheet provides everything your staff need to know.
Download your Single Touch Payroll Checklist now. You can tick the items off as you go.
How is Single Touch Payroll different to what you do now?
Pay day: Employers must report a “payroll event” to the ATO from their payroll software at the same time as they pay their employees various types of payments including salary or wages.
End of year: Employers who report through Single Touch Payroll will no longer need to provide employees with an end-of-year payment summary or send the ATO a PAYG withholding annual report. Instead they will need to send a “final event indicator” to the ATO with their final pay or at year end.
Employees: Using their myGov account, employees will be able to interact securely with the ATO to view their year-to-date salary or wage amounts, PAYG withholding and employer superannuation contributions. End-of-year payment summaries will also be available in myGov.
Employee onboarding: Start date and tax file number (TFN) declaration can be reported in payroll events. There may also be an option to use a new streamlined, pre-filled employee commencement process through myGov.
Employee cessation: Cessation date can be reported in payroll events. Employers will need to send a final event indicator to the ATO with the affected employee’s final pay or at year end.
These items are all covered in the Single Touch Payroll Checklist.
Less than 20 employees
The Single Touch Payroll compliance date for employers with 19 or less employees is 1 July 2019.
Legislation to extend Single Touch Payroll to include smaller employers was finally passed by parliament on 12 February 2019. The reforms will impact about 780,000 small and medium businesses.
In anticipation of the passing of legislation, the ATO wrote to smaller businesses in November 2018 and January 2019 encouraging them to “Start Single Touch Payroll reporting now” if their payroll software is STP-enabled.
Single Touch Payroll news and guides
Legislation to extend Single Touch Payroll to employers with 19 or less employees was passed by parliament today. The reforms come into effect from 1 July 2019 and will impact about 780,000 smaller employers.
The Australian Taxation Office will write to smaller employers in November encouraging them to start Single Touch Payroll reporting. If their payroll software offers STP they can update and start reporting now.
40,000 employers have commenced Single Touch Payroll reporting. Whilst this represents the majority of businesses with 20 or more staff, it still leaves a large number yet to meet their compliance obligations.
Alarmingly only 5% of advisors have raised Single Touch Payroll with their clients. Medium businesses in particular rely on their accountant or business advisor to keep them on top of compliance requirements.
If you haven’t already, mark 1 April 2018 in your diary. This is the date stipulated by the Australian Taxation Office to count the employees on your payroll. Find out who you need to include in your headcount.
Single Touch Payroll also impacts employees. Our STP employee fact sheet provides everything your staff need to know. Download your free copy to share with your staff.