We have been advising our clients to prepare for single touch payroll for the last 2 years, knowing that it is coming and now here it is!
The ATO is changing the way that we employers have to report PAYG and super information to them. This change comes into being from 1 July 2018 and is called Single Touch Payroll. If you have 20 or more employees you need to start using single touch payroll through your software systems to report your wages and salaries, your PAYG withholding and super payments.
The information will be submitted to the ATO at the same time as you pay your employees direct from your software. If you are using compatible software you can start earlier than 1 July 2018. Check with your payroll software or service provider.
On 1 April 2018 you are required to count your employees and then start reporting from 1 July. This is a headcount, not a full time equivalent count. If you have 20 or more employees you will be classified as a ‘substantial employer’ and will need to commence with Single Touch Payroll. Once classified this way, you will remain with this classification even if your staff numbers drop to below 20 at a later stage.
The ATO provide this information on completing your headcount:
Who to include in your headcount
You need to include the following employees in your headcount:
• full-time employees
• part-time employees
• casual employees who are on your payroll on 1 April and worked any time during March
• employees based overseas
• any employee absent or on leave (paid or unpaid)
• seasonal employees (staff who are engaged short term to meet a regular peak workload, for example, harvest workers).
Do not include:
• any employees who ceased work before 1 April
• casual employees who did not work in March
• independent contractors
• staff provided by a third-party labour hire organisation
• company directors
• office holders
• religious practitioners
You will not have to change your payroll cycle and this can remain as it is stated under any award coverage. The ultimate desired outcome is that employers with less than 19 employees will need to also utilise Single Touch Payroll from 1 July 2019. This has not been confirmed as yet.
For further information contact the ATO on 13 28 66
To find out more, visit our website ato.gov.au/singletouchpayroll
Important Note: These articles have been prepared for general circulation and are circulated for general informational purposes only; these articles should not be regarded as business or investment advice. The articles represent the views of the writers and are subject to change without notice. Additionally, while every care has been taken in the preparation of the articles no representation or warranty as to accuracy or completeness of any statement is given. An individual or organisation should, before any business or investment decision is made, consider the appropriateness of the information in this document, and seek professional advice, having regard to objectives, situation and needs. This document is solely for the use of the party to whom it is provided.