The Australian Taxation Office has introduced a new payroll system to streamline the way small business reports its payroll information.
Small businesses will be required to report salaries and wages, pay as you go (PAYG) withholding and super information to the ATO when it pays employees.
This can be done by updating existing payroll software to include Single Touch Payroll reporting. Payroll software providers are updating their products now.
If you have 20 or more employees you will need to use the new system from 1 July 2018. The first year will be a transition period and penalties may not apply.
If you have 19 or less employees, you will need to report through Single Touch Payroll from 1 July 2019, subject to legislation being passed in parliament.
The following employees must be included in any headcount:
- full time, part time and casual employees
- employees based overseas
- any employee absent or on leave (paid or unpaid)
- seasonal employees
Reporting to the ATO through Single Touch Payroll, will enable employees to view their year‑to‑date tax and super information through myGov.