If you employ people you may have heard about “Single Touch Payroll” that commences July 1, 2018.
There are lots of lengthy webinars you can attend, but if you want a quick run-down on how it works, here is a summary of the key takeaways that I gained from the ATO webinar:
It only affects employers with over 20 employees. The date to assess your employee count is April 1st. Only include casuals if the worked in March. Seasonal businesses have their own rules.
The underlying principle is that the system is designed to work with the “natural business cycle”. No new information is being provided to the ATO. The information is simply being provided on or before the date of each pay.
Basically, you send a file to the ATO every time you do a pay run. File includes information such as employee name, tax file number, gross pay, tax deducted and superannuation.
As with most things nowadays, having compliant payroll software will ensure your obligations are discharged easily.
Corrections/adjustments are allowed for in the system.
Only payments that are part of a payroll system need to be reported.
TFN Declarations can be submitted via this system, however it is not compulsory.
No PAYG Payment summaries will need to be issued to employees in future.
A “finalization” declaration will need to be made at year end.
You can commence at any time during the financial year as year to date figures are submitted.
As with any new system, there are so many complexities that may relate to individual circumstances and I have not dealt with them here.
Happy to answer any questions that you may have. Alternatively, please seek appropriate professional advice to ensure your business complies.
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