Single Touch Payroll is coming

Single Touch Payroll is coming. Single Touch Payroll (STP) will require all employers to report to the ATO at the time of every pay how much they are paying and to whom.  No more advising the total of all wages at W1 and tax thereon at W2 on the following activity statement (with the detail only being provided to the ATO with the supply of the PAYG Payment Summaries after the end of the year).

A test program is underway. It will become optional from July 2017 and mandatory for all employers with 20 or more employees from July 2018.  Once the systems is fully up and running the need for PAYG Payment Summaries (group certificates) will be dropped as the ATO will know exactly how much has been paid as of an employee’s last pay.  Employees will be able go into their MyGov account and see these details – as well as the super that is to be paid.

STP will also allow employers to provide employers with TFN Declarations and Super Choice forms.

Thankfully it was announced in September that the proposed requirement for employers to pay the PAYG WH to the ATO at the time employers are paid has been dropped – exactly how cashed up did they think the typical small & medium sized business is?

So if you don’t have a complying and/or efficient payroll system, now is the time to explore your options. Speak to us about your options and what you need to do.

At MRS, we will spend today planning for your success tomorrow.

At MRS, we will spend today planning for your success.