With the introduction of Single Touch Payroll coming to Australian businesses in April 2018, the Australian Taxation Office (ATO) has warned all employers with 15 or more staff to be prepared for the change.
What is Single Touch Payroll?
Single Touch Payroll (STP) is the biggest payroll reporting change in Australia’s history. Under the STP system, employers must report employee payments such as salary or wages, PAYG withholding and superannuation to the ATO at the same time as paying their staff. It must be done electronically to the ATO with every pay run. This new, direct digital connection to the ATO requires all payroll systems to be upgraded to accommodate the change.
Who will it affect?
If your business has 20 or more employees on April 1 2018, you will need to start STP reporting from July 1 2018. If you have 19 or less employees, your deadline to start reporting will be July 1 2019. The headcount of employees must include:
- Full-time employees
- Part-time employees
- Casual employees (who are on the payroll and worked any time in March)
- Employees based overseas
- Any employee who is absent or on leave (paid or unpaid)
- Seasonal employees
Independent contractors, staff provided by third-party labour hire organisations, company directors, office holders and religious practitioners should be excluded.
STP will require either an upgrade or replacement of your existing payroll system, so it’s a good time to review your requirements and current business processes.
For advice regarding the Single Touch Payroll changes, please contact us on (08) 9316 9896 or enquiries@processworx.com.au.
