Come July 1st 2018 we’re not going to be in Kansas anymore, as Single Touch Payroll goes live. Today we look at the impact to your business, and things to be aware of.
What is Single Touch?
Single Touch Payroll is a reporting change for employers. It means employers will report payments such as salaries and wages, pay as you go (PAYG) withholding and super information to us directly from their payroll solution at the same time they pay their employees.
Employers may need to update their payroll solution to report through Single Touch Payroll.
Employers with 20 or more employees will need to comply with Single Touch Payroll reporting from July 1st 2018.
How does Single Touch Payroll benefit employers?
The main benefits for employers with Single Touch Payroll is that it will streamline the process of reporting to the ATO by being able to submit payroll information upon completion.
By doing this the ATO will be able to pre-fill the BAS (W1 and W2) for employers, eliminating potential errors and double handling. Additionally, the need to generate and distribute payment summaries may be eliminated for employees as this information will be made available online via myGov.
How will this impact my payroll?
Essentially nothing will change in how you process payroll. The main thing is that after each “pay event” you will need to send some additional reporting information to the ATO.
If your software provider doesn’t support Single Touch Payroll by July 1 2018 and you employ 20 or more employees, you may need to look for another provider.
Will I still need to submit a BAS? Yes – you’ll still need to submit a BAS, but the W1 and W2 values will be pre-filled
Will I be able to adjust the pre-filled values on my BAS? Yes
Will I still need to submit an annual payment summary report? If you use Single Touch Payroll reporting, you may not need to submit a payment summary report. The ATO is yet to provide final clarification on this.
Will I still need to generate payment summaries for my employees? If you use Single Touch reporting, you may not need to submit a payment summary report.
Can I make PAYG or super payments through Single Touch Payroll? No, Single Touch Payroll is a reporting solution only. You will still need to make PAYG and super payments separately.
Can a payroll provider or registered agent submit Single Touch Payroll data on behalf of a client? Yes, payroll providers and BAS agents will be able to lodge Single Touch data on behalf of clients.
For more information on Single Touch, head to the ATO website.