By the 1st of July 2018 the ATO will require all business with 20+ employees to have Single Touch Payroll (STP).
Single Touch Payroll is an Australian government initiative that changes the way businesses report on employee payments such as salary or wages, pay as you go (PAYG) withholding and superannuation.
Under STP, this payroll information will be sent electronically directly to the ATO at the same time as the employer pays their employees. This can only be done by linking to the ATO via an authorised service provider connected to your STP-enabled payroll system.
How Single Touch Payroll will impact you
Employers with 20 or more employees on 1 April 2018 will be required to conform to these new regulations on or before 1 July 2018.
This means you will need to upgrade to a Single Touch Payroll compliant payroll system and review some of your payroll procedures.
Payroll software vendors, including Attaché, are currently working with the ATO on their Single Touch Payroll integration and most are yet to announce their product plans for compliant versions. The technical complexity of STP means it is unlike the usual upgrades for tax scales or payment summaries. If you are using a previous generation system, you should not assume it will be upgraded due to the significant development costs to vendors.
As payroll is typically part of a suite of accounting applications as well as other integrated employee systems and IT infrastructure, you may need to review more than just your payroll system.
What you can do
Watch the below video for more information and get in touch to talk to our team about how you can stay compliant with these ATO mandated changes – 1300 766 661.