The ATO are rolling out a new payroll reporting system known as ‘Single Touch Payroll’. From 1 July 2017 employers will be able to use the new system to report their gross wages, PAYG Withholding, and super guarantee payments at the same time as they process payroll transactions.
From 1 July 2018 all employers who employ 20 or more staff will need to be using the new system.
Some of these changes are:
- Gross wages and PAYG Withholding will be pre-filled into BAS and IAS.
- Employees will be able to access running balance payroll information through mygov and will no longer receive an end of year payment summary.
- Employers will no longer report annual payment summary statement information to ATO, but will report to the ATO that the information provided is final and correct.
Some practical considerations of this new system are:
- Businesses will need to be using an up to date accounting product.
- Super guarantee payments will be monitored so the ATO will be alerted to any late payments.
- Cash flow can be streamlined by paying PAYG withholding at the same time as wages.
While there is still some time before these changes are mandatory, it might be a good idea to use 2017/18 as a chance to get familiar with the new system.
For assistance or further information please contact the office.