Single Touch Payroll
The Single Touch Payroll reporting requirements are nearly upon us and we are now starting to see actionable updates coming through from the software providers. We are contacting all of our clients to see if they have taken action to accommodate the changes.
We've created a Single Touch Payroll checklist – if you tick ‘no’ for any of the items or are unsure of how they impact you, PKF is on hand to help. If you are unsure whether your software is compatible, or if you'd like assistance of any kind, please contact PKF today.
What is Single Touch Payroll?
Single Touch Payroll (STP) is a new way for employers to report payroll activity to the Australian Tax Office (ATO).
STP is designed to report the salary and wages, PAYG and superannuation of employees to the ATO every pay run through compliant software, instead of once a year via Payment Summaries.
STP became compulsory for employers with 20+ employees on 1 July 2018 and will be for employers with 1-19 employees from 1 July 2019.
What will Change?
No more Payment Summaries!
As you will be reporting each pay period, there will be no need to prepare individual or annual Payment Summaries. Through the software, you’ll let the ATO know when you’ve made your final pay run of the year. Employees can access up-to-date tax and super information through their myGov account at any point through the year.
How do I get Connected?
If you already use online payroll software, you check that it can produce ATO-compliant reports by contacting PKF or your supplier. Xero, MYOB Essentials and MYOB AccountRight Live are all STP enabled. If you are operating on AccountRight Live, a software update may be required.
If you have a desktop version of MYOB, please contact PKF or MYOB to ensure that you are able to report via STP
Xero and MYOB both now offer low-cost payroll-only products for STP compliance.
There are many options on the market. Our staff are familiar with most of them, and we would be happy to help guide you in the right direction.