Single Touch Payroll requires employers to send tax and superannuation information to the ATO every time they pay their employees and will commence on 1 July 2019 for all employers.
Features of Single Touch Payroll:
- Employers will no longer need to provide their employees with payment summaries for the information they report through Single Touch Payroll.
- Employees will find the information they need to complete their income tax return in ATO online services, accessed through myGov. Employees who choose not to have a myGov account can contact the ATO to get a copy of their payment summary information.
- Employers will no longer need to provide the ATO with a payment summary annual report (PSAR).
- From January 2020, the ATO will pre-fill activity statement labels W1 and W2.
- Employers will be able to offer online commencement forms to new employees, including Tax file number declaration, Superannuation (super) standard choice, Withholding declaration and Medicare levy variation declaration forms that can be sent to the ATO from myGov.
How to report through Single Touch payroll:
- Report through your existing Single Touch Payroll enabled software
- Report through a new Single Touch Payroll enabled software. If you are a micro employer with one to four employees, the ATO has compiled a list of 24 companies that have put forward product proposals to offer low cost (ie less than $10 per month) Single Touch Payroll solutions. The list can be found at www.ato.gov.au/business/single-touch-payroll/in-detail/low-cost-singletouch-payroll-solutions.
- Ask a third party, such as a registered tax or BAS agent or payroll service provider, to report through Single Touch Payroll on your behalf. If you have four or less employees, Twomeys will be able to report your Single Touch Payroll information quarterly for the first two years, rather than each time you process a pay run.
NB: If you have closely held payees (i.e. the payee is directly related to the entity from which they receive payments, for example family members of a family-owned business), you are exempt from reporting closely held payees for the 201920 financial year.