Are you ready for Single Touch Payroll?

Single Touch Payroll

Rede Accountants Gold Coast, Brisbane & Byron Bay

The ATO has mandated that every employer needs to electronically report wages, tax withheld and superannuation for every employee on every payday. Have they gone crazy? The ATO claim there will be more regular and better reporting and no need to produce annual PAYGW Summaries for employees. That’s a massive benefit for employers, right? I don’t think so.

If you employ 20 or more staff you should already have started reporting some time ago. This article applies to those with less than 20 employees. You are meant to start the first payday AFTER 30 June 2019. It is COMPULSORY. It is optional to commence and experiment with the process prior to 30 June 2019.

Are there any exceptions to commencing from 1 July 2019? The ATO recognises that some employers may be in areas that have poor or unreliable or no internet access. However, you must apply for an exemption or deferral of time. It is not an automatic right. They also list certain employees where there are some concessions, most of these are unusual situations such as seasonal employees and foreign employees.

For those of you using online payroll reporting, there should not be many issues. It will really be a matter of a few more clicks on your computer keyboards, laptops, iPads or phones. Your provider is most likely already communicating with you. If not, you should be contacting them.
For those of that do not have software or cloud packages, you need to enrol or sign up with a provider. Please note that many desktop software versions will not cut the mustard for reporting purposes. A further option is to use an external payroll service.

The ATO have listed on their website low-cost Single Touch Payroll Solutions. There they list providers for micro employers (1-4 staff). They have instructed such providers to provide micro employers with a solution that might cost about $10 per month. This also includes potential mobile phone apps. Many of these providers are still getting their act together with the programs/apps and pricing. Many are already making announcements.

You should seek advice and assistance from your accountant for this matter. It should not be taken lightly as it will be compulsory for all employers. If you would like assistance with setting up your Single Touch Payroll solution or to confirm you meet the minimum requirements contact us.

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