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business employment money systems

Single Touch Payroll – Are you ready?

Single Touch PayrollDo you hire employees? Do you have 20 or more employees? Do you know about Single Touch Payroll? If not, now is the time to learn about it!

What is Single Touch Payroll?

Basically whenever you make a payment to your employees, you need to report information to the ATO. You don’t need to make any changes to your current pay cycle, but your accounting software needs to be Single Touch Payroll compliant so you can report accurately. The information you’ll be reporting includes wages and salaries, allowances, deductions, any other payments, PAYG withholding and superannuation obligations.

If you have 20 or more employees, you need to start reporting from 1 July 2018. If you have less than 20 employees, you can choose to start reporting from 1 July 2018, and must report by 1 July 2019.

How do you get Single Touch Payroll ready?

If you have 20 or more employees you need to start getting ready now. Here’s some things you can do to prepare:

  • Count the number of employees you have on your payroll on 1 April 2018 to determine if you are required to start reporting in July.
  • Ensure your current payroll solution is Single Touch Payroll compliant.
  • Speak with your BAS Agent (us!) about the solution you currently have in place, and if there are any changes that you need to make. If you don’t have a payroll solution, we can help you.

How does the head count work?

To find out if you are required to report through Single Touch Payroll in July you need to do a head count of the number of employees you have at 1 April 2018.

If you have 20 or more employees on that date, you will need to start reporting Single Touch Payroll from 1 July 2018. If you have 19 or less employees there is plenty of time for you to get ready for Single Touch Payroll, or you can choose to start on 1 July 2018 also.

The head count includes:

  • Full time employees
  • Part time employees
  • Casual employees who are on your payroll on 1 April and worked any time during March
  • Employees based overseas
  • Any employees absent or on leave (paid or unpaid)

The head count does not include:

  • Employees who ceased work prior to 1 April
  • Casual employees who did not work in March
  • Independent contractors
  • Staff provided by a third party labour hire organisation
  • Company directors
  • Office holders
  • Religious practitioners

What if your software is not compliant?

You may need to choose a new payroll solution if:

  • You currently don’t have one
  • You currently report to the ATO on paper
  • Your existing payroll solution will not offer Single Touch Payroll reporting
  • You want a product that better suits your business needs

If you are considering updating or changing your software, consider what your Single Touch Payroll requirements are. Speak to us first about your options and we recommend Xero which will be Single Touch Payroll compliant and provide a simple, easy way to meet your obligations each reporting period. Not to mention all the other cool stuff it does!

Don’t have a BAS Agent? That’s no problem – we can help you! Check out our services here.

Next steps

  1. Do your head count on 1 April 2018
  2. Make sure you have Single Touch Payroll compliant software
  3. Talk to us.