Single Touch Payroll is a new Government reporting requirement for employers. It is designed to make your reporting requirements easier. Affected areas include:
- salaries and wages
- PAYG withholding
The above payments will need to be reported to ATO from an employer’s payroll solution at the same time that employees are paid. Employers will no longer be able to use a separate process to report payments to the ATO.
Below we address the main topics for employers regarding these changes:
- Key dates
- Is your payroll provider Single Touch Payroll enabled?
- Effect on pay cycles
- Effect on TWUSUPER payments
- Super arrangements for new employees
- Effect on existing employees
This requirement will apply from:
- 1 July 2018 for employers with 20 or more employees
- 1 July 2019 for employers with 19 or fewer employees (but you can start earlier)
The first thing you need to do is complete an employee headcount as at 1 April 2018. The headcount is like the census – you can do it after 1 April, but you need to count the employees who were on your payroll on 1 April. The ATO has further information on how to count your employees.
Is your payroll provider Single Touch Payroll enabled?
Check the Australian Business Software Industry Association product catalogue. This catalogue is regularly being updated. If your payroll provider isn't listed you should contact them and ask when they will become enabled, and if you need a software update.
Effect on pay cycles
You can still pay your employees super, salaries and other entitlements according to your pay cycle.
Effect on TWUSUPER payments
Your Single Touch Payroll enabled provider will need to be Superstream compliant and meet clearing house requirements.
TWUSUPER will work with employers to make sure their payroll providers are compatible. We will also be providing updates on this website and by email. To make sure we have the best contact address for your business, call us on 1800 241 877.
Super arrangements for new employees
Default and preferred super funds of employers won't be affected by Single Touch Payroll. However, employees may be requested to complete their Tax File Number declaration and Choice of fund form online under the Single Touch Payroll arrangements.
You should continue to advise new employees of TWUSUPER's status as default or preferred fund as they join your organisation.
TWUSUPER will provide more information about what this process will look like when the design of the Choice of fund online form is finalised by the ATO.
Effect on existing employees
Under Single Touch Payroll, employees will see more up-to-date tax and super information in ATO Online Services through myGov.
They will be able to see their year-to-date pay and any tax withheld, and what super contributions their employer is liable to make.
As the Government is still finalising Single Touch Payroll arrangements, we will give you all the answers to your questions as they become known.
We will be communicating with employers regarding next steps, and providing updates by email and through this website.