How to be compliant for Single Touch Payroll

Phil Johnson

5 June 2017    |   

The new Federal Government initiative of Single Touch Payroll will aim to streamline business reporting obligations regarding certain taxes and wage information. Legislated on the 16 September 2016 under the Budget Savings (Omnibus) Act 2016, Single Touch Payroll (STP) will become mandatory July 1 2018, for employers with 20 or more employees. Single Touch Payroll will be available to employers July 1 2017, for those who wish to begin voluntary reporting earlier. Under the legislation, employers will be required to report ordinary time earnings, staff wages, Pay-As-You-Go (PAYG) withholding information, and superannuation contributions directly to the ATO, at each payroll cycle.  What do you need to do? In order to report the necessary information to the ATO businesses with 20 or more staff (as of April 1 2018) will be required to implement Single Touch Payroll compliant payroll solutions in their business, prior to July 1 2018. Payroll solutions refers to the accounting software, business management solutions or payroll software that you use to process payroll. Already have a payroll solution? Business with 20 or more employees (as of April 1 2018), that are already using a payroll solution will be required to update their software to be Single Touch Payroll compliant before July 1 2018. The ATO has advised that they are working closely with payroll providers to ensure that their products are ready for Single Touch Payroll in 2018. Don’t have a payroll solution? Businesses with 20 or more employees (as of April 1 2018), who don’t have a payroll solution in place, will need to implement one ahead of July 1, that is compliant with Single Touch Payroll. There is currently no requirement for employers with 19 or less employees (as of April 1 2018) to begin reporting through Single Touch Payroll. However, businesses can choose to implement a compliant Single Touch Payroll system if they wish to utilise Single Touch Payroll reporting. Someone else does your payroll? If you have a Tax or BAS agent or third party, who lodges your relevant paperwork your behalf, they will be required to report through Single Touch Payroll from July 1 2018. The ATO is working closely with Tax and BAS agents to ensure they are ready for Single Touch Payroll. Individuals should however check with their agent before July 1 2018, to confirm that they are compliant and ready for Single Touch Payroll. Benefits of updating your Payroll solution Upgrading or implementing a STP compliant system is a great excuse to evaluate the other business systems you have in place, and upgrade them where necessary. Integrating core business systems such as payroll, workforce management, POS, inventory, record keeping and reporting, can be hugely beneficial in streamlining business efficiencies. Not only does its result is greater oversight and compliance, but it also provides a more wholesome and in-depth overview of the entire business, which can help you to make smarter more informed decisions for the whole business. For more information about how to be compliant with Single Touch Payroll, chat to your accountant or visit the ATO website.  

The new Federal Government initiative of Single Touch Payroll will aim to streamline business reporting obligations regarding certain taxes and wage information.

Legislated on the 16 September 2016 under the Budget Savings (Omnibus) Act 2016, Single Touch Payroll (STP) will become mandatory July 1 2018, for employers with 20 or more employees.

Single Touch Payroll will be available to employers July 1 2017, for those who wish to begin voluntary reporting earlier.

Under the legislation, employers will be required to report ordinary time earnings, staff wages, Pay-As-You-Go (PAYG) withholding information, and superannuation contributions directly to the ATO, at each payroll cycle. 

What do you need to do?

In order to report the necessary information to the ATO businesses with 20 or more staff (as of April 1 2018) will be required to implement Single Touch Payroll compliant payroll solutions in their business, prior to July 1 2018.

Payroll solutions refers to the accounting software, business management solutions or payroll software that you use to process payroll.

Already have a payroll solution?

Business with 20 or more employees (as of April 1 2018), that are already using a payroll solution will be required to update their software to be Single Touch Payroll compliant before July 1 2018.

The ATO has advised that they are working closely with payroll providers to ensure that their products are ready for Single Touch Payroll in 2018.

Don’t have a payroll solution?

Businesses with 20 or more employees (as of April 1 2018), who don’t have a payroll solution in place, will need to implement one ahead of July 1, that is compliant with Single Touch Payroll.

There is currently no requirement for employers with 19 or less employees (as of April 1 2018) to begin reporting through Single Touch Payroll. However, businesses can choose to implement a compliant Single Touch Payroll system if they wish to utilise Single Touch Payroll reporting.

Someone else does your payroll?

If you have a Tax or BAS agent or third party, who lodges your relevant paperwork your behalf, they will be required to report through Single Touch Payroll from July 1 2018. The ATO is working closely with Tax and BAS agents to ensure they are ready for Single Touch Payroll. Individuals should however check with their agent before July 1 2018, to confirm that they are compliant and ready for Single Touch Payroll.

Benefits of updating your Payroll solution

Upgrading or implementing a STP compliant system is a great excuse to evaluate the other business systems you have in place, and upgrade them where necessary.

Integrating core business systems such as payroll, workforce management, POS, inventory, record keeping and reporting, can be hugely beneficial in streamlining business efficiencies. Not only does its result is greater oversight and compliance, but it also provides a more wholesome and in-depth overview of the entire business, which can help you to make smarter more informed decisions for the whole business.

For more information about how to be compliant with Single Touch Payroll, chat to your accountant or visit the ATO website.

 

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Events & Media    |   

What is Single Touch Payroll?

Single Touch Payroll is a Federal Government initiative aimed at streamlining business reporting obligations regarding certain taxes and wage information. Often referred to as Single Touch Payroll, or Single Touch Payroll Reporting (STPR), it was legislated on the September 16 2016, under the Budget Savings (Omnibus) Act 2016. Under the legislation, employers will be required to report ordinary time earnings, staff wages, Pay-As-You-Go (PAYG) withholding information, and superannuation contributions directly to the ATO, at each payroll cycle. Key dates for Single Touch Payroll Single Touch Payroll will become mandatory July 1 2018 for ‘substantial’ employers, those with 20 or more employees as of April 2018. However, it will be available to employers July 1 2017, for those who wish to begin reporting earlier. For employers with 19 employees or less, Single Touch Payroll will also be made available July 1 2017. There currently is no information regarding whether it will become mandatory for employers with 19 employees of less. Single Touch Payroll will provide employer payroll data in ‘real time’ to the ATO. This will allow them to monitor payroll compliance, and perform data-matching to determine if Superannuation Guarantee Charge as well as PAYG withholding obligations are met. For employers, Single Touch Payroll will seek reduce the administrative reporting burden by providing an automated reporting system throughout the entire financial year, that ensures transparency. Changes for Employers Ordinary Time Earnings, Salary or wages, and PAYG withholding information will reported in real time to the ATO, as payroll is processed periodically. Super contributions will be reported to the ATO as they are paid. Employers will need to update their payroll software to be STPR compliant, or implement STPR compliant payroll software, if they currently don’t have one. New employees will have the option to complete TFN and Super Choice forms online. STPR will become the approved form of reporting for PAYG withholding. Employers who use STPR to report their PAYG withholding obligations will have their PAYG withholding prefilled in their BAS by the ATO Employers will no longer be required to submit an annual PAYG report to the ATO. Employers may no longer need to supply payment summaries to employees. Changes for Employees View online year-to-date pay, the tax that has been withheld as well as your super entitlements throughout the year. Complete pre-filled TFN and Super Choice forms online when you start a new job. Access a range of tax and superannuation services, lodge tax returns and track your super online, using the myGov portal. Where to now? July 2018 is slowly creeping up, and it’s important that employers start thinking about Single Touch Payroll, and what it will mean for their business. Business that currently use payroll software, will need to upgrade their system to be STPR compliant. For businesses that are currently not using any payroll software, they will be required to implement STPR compliant software prior to July 1, 2018. In addition to this, all businesses should consider the robustness of their current payroll processes, including the accuracy and efficiency in how staff are paid. Integrating a compliant workforce management system with your payroll software is a simple and effective way to ensure that you remain compliant in all aspects of the payroll process. For more information about Single Touch Payroll, visit the ATO website.

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Tanda announces Global Partnership with AEVI

Tanda has announced a partnership with international technology company AEVI. The partnership will bring Tanda’s market leading workforce management solution to AEVI’s Global Marketplace for smart Point of Sale (SmartPOS) devices. This will revolutionise how merchants and business owners run and manage their business. Australia has some of the most complicated labour laws in the world, subsequently making it one of the most complex countries to run payroll in. Using Australia’s intricate labour conditions as a foundation, Tanda provides a robust and agile solution to business owners looking to streamline their workforce administration. Through Tanda users can improve productivity, profitability, and gain compliance comfort in how they manage and pay their staff. Press Release: AEVI and Tanda Partner to Simplify Workforce Management for Business Owners London 24/05/17 – AEVI has today announced a partnership with Australian-based technology company Tanda, to bring their industry leading cloud-based payroll and rostering solution to AEVI’s Global Marketplace; the B2B app store for smart Point of Sale (SmartPOS). This collaboration will enable merchants in the retail and hospitality space to streamline their workforce management via the apps seamless integration with AEVI’s range of compatible SmartPOS devices. SMEs are always on the lookout for innovative ways to save time and reduce costs. With Tanda’s market leading automated workforce technology, they can do just that. Rather than wasting time on payroll and HR, owners will be free to focus on the things that truly matter to their business. With over 145 million rostered hours across 2,500+ business locations around the world, Tanda combines all the workforce management tools a merchant could need into one simple, secure, solution. From reliable time clock applications to user-friendly digitised rostering, Tanda’s innovative software takes the guess work out of time management, ensuring employees are paid accurately and on time. The strategic partnership with AEVI will expand Tanda’s global reach, and make their solution available to a global network of key merchant banks and acquirers. With over 70,000 SmartPOS terminals already in operation across Australia and central Europe, AEVI is the ideal partner for Tanda to increase their speed to market, and expand into new regions. Liam Scanlan, Director of Strategic Development for Tanda said, “Partnering with AEVI will bring best of breed solutions to businesses all over the world, uniting Tanda’s leading workforce management software with AEVI’s Global Marketplace. Tanda and AEVI know there is an opportunity to make a real difference to the lives of business owners in how they pay and manage their staff, giving them more time to invest in running their business. Our combined offering helps achieve this.” “We are thrilled to bring Tanda’s market leading workforce technology to our Global Marketplace” said Mike Camerling, Director Marketplace, AEVI. “We could all use a little more time at work. Thanks to Tanda that is now a real possibility for the merchants of all our bank and acquiring customers.” AEVI continues its mission to pioneer and lead the payments community towards an open ecosystem. Providing banks and acquirers with the capabilities to differentiate themselves on more than just price and technical specifications. To find out more about how AEVI continues to grow its choice of value-added apps and services please visit marketplace.aevi.com. ~ENDS~ Note to Editors: About AEVI: AEVI brings acquirers closer to their merchants, and merchants closer to their consumers, with an open Ecosystem that combines apps, payment services and a multi-vendor selection of payment devices.  Selecting from a marketplace of high-quality apps and services, Acquirers can quickly create differentiated, innovative SmartPOS solutions under their own brands. Our centralized payments as a service platform eliminates obstacles, and helps Acquirers simplify the complex payment landscape with a single integration and access to a comprehensive suite of cloud-based, back office reporting tools for enhanced control and flexibility. We welcome Acquirers, App Solution Partners and Hardware Vendors to build on our vision of an open, collaborative payments Ecosystem unrestricted by device vendors, currencies, borders or regulations. www.aevi.com AEVI International GmbH is a subsidiary company of Diebold Nixdorf and is headquartered in Germany with operations in the United Kingdom and the Czech Republic.

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About the author

Phil Johnson

Partner Manager: Having used Tanda in a management capacity prior to working at Tanda, Phil understands first hand the value that Tanda can bring to a business. Phil now manages Tanda's Partner Program, to assist businesses to implement innovative solutions and processes in their business.

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Events & Media

What is Single Touch Payroll?

Single Touch Payroll is a Federal Government initiative aimed at streamlining business reporting obligations regarding certain taxes and wage information. Often referred to as Single Touch Payroll, or Single Touch Payroll Reporting (STPR), it was legislated on the September 16 2016, under the Budget Savings (Omnibus) Act 2016. Under the legislation, employers will be required […]

Events & Media

Tanda announces Global Partnership with AEVI

Tanda has announced a partnership with international technology company AEVI. The partnership will bring Tanda’s market leading workforce management solution to AEVI’s Global Marketplace for smart Point of Sale (SmartPOS) devices. This will revolutionise how merchants and business owners run and manage their business. Australia has some of the most complicated labour laws in the […]

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