Single Touch Payroll will be mandatory for employers with 20 or more employees (substantial employer) from 1 July 2018 and for ALL employers from 1 July 2019.

Employee numbers are determined based on payroll on 1 April 2018 and include full-time employees, part-time employees, casual employees who worked any time during March 2018, employees who are on leave (paid or unpaid) and seasonal employees.

Employee numbers are based on head count and not on full-time equivalents. Employers who are located in a rural area with no reliable internet connection or who are substantial employers for only a short period of the year (eg due to shearing or harvesting activities) may apply for an exemption from Single Touch Payroll reporting.

Employers will be required to report salary or wages, PAYG withholding and superannuation information directly to the ATO at the same time that payment is made to their employees. Employers who report through Single Touch Payroll will not be required to provide employees with Payment Summaries at the end of the year.

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