Over the last couple of years we’ve seen technology change at a rapid rate – and the Government and the Australian Taxation Office (ATO) are working with software providers to keep up the pace. Another new initiative that is heading our way is Single Touch Payroll. So what is it, and what does it mean for you?
Single Touch Payroll will enable employers to report payroll information to the ATO in real time ie. as employees are paid, information such as wages, PAYG withholding and super information will be reported directly to the ATO via your payroll software. This will become mandatory from 1 July 2018 for employers who employ more than 20 employees. However, software providers are currently working on enabling this technology within their platforms and this functionality may be available earlier.
The good news for employers is that by utilising Single Touch Payroll, this will eliminate the need to provide payment summaries to employees at the end of each year.
Or if you are an employee, this means that this information will also be linked to your myGov account so wages, tax and super information will always be available to you.
We will provide further updates as they come to hand. Or to read more about it on the ATO website, please click here.