Tag: Single Touch Payroll

SINGLE TOUCH PAYROLL

STP if fnally here! 
From 1 July 2018, all employers with 20 or more employees (as at 1 April 2018), must report their payroll information to the ATO via Single Touch Payroll. STP is a reporting change for employers. Essentially, STP requires that each time an employer pays their employees, they will have to instantly report to the ATO information such as the salaries and wages, pay as you go (PAYG) withholding and superannuation. The information will need to be reported from software, which is STP-enables. Eventually this will mean:

  • Employers will not need to provide Payment Summaries to their employees for the payments reporter through STP.
  • Employees will be able to view their payment information in ATO online services, which they will access through their myGov account.
  • Some labels on Activity Statements will be pre-filled with the information already reported.

NB employers with less than 20 employees (as at 1 April 2018) your STP start date will be 1 July 2019.

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SINGLE TOUCH PAYROLL

Information for employers

Single Touch Payroll reporting starts from 1 July 2018 for employers with 20 or more employees.

To find out if you need to be ready by then, you will need to do a headcount of the employees you have on your payroll on 1 April 2018 (see How to count your employees).

If you have 20 or more employees on that date you will be a ‘substantial employer’. You will need to report through Single Touch Payroll from 1 July 2018. This is now law.

If you have 19 or less employees, Single Touch Payroll reporting will be optional until 1 July 2019. It will be mandatory from that date, subject to legislation being passed in parliament.

How your reporting will change

Your payroll solution will need to be updated for Single Touch Payroll reporting.

When you pay your employees through your Single Touch Payroll-enabled solution you will be reporting payments such as their salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding and super information to the ATO at the same time.

Your payroll cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly. You may have different pay cycles for different employees.

It simply means that when you complete your payroll, the tax and super information for each employee will be sent to us. This is a more streamlined way of reporting to us.

https://www.ato.gov.au/about-ato/about-us/in-detail/strategic-direction/streamlined-reporting-with-single-touch-payroll/?anchor=Employers1#Employers1 

The following tax changes commence 1 July 2017 and may impact you or your clients:

Happy New Financial Year!

Income Tax

Deficit Levy to be abolished – thus resulting in a 2% tax cut for individuals with taxable income in excess of $180 000.

Minimum Wage

On 6 June 2017, the Fair Work Commission handed down its annual wage review. The decision varied the following:

  • Minimum wage rates in Modern Awards – increased by 3.3% from first full pay period commencing on or after 1 July 2017 (rounded to the nearest 10 cents)
  • National minimum wage – increased by 3.3% to $694.90 per week, or $18.29 per hour
  • Wages for juniors, apprentices – most rates are expressed as a percentage of nominated adult rate so they receive a proportionate increase to the adult rate
  • Wages for trainees and piece workers – most trainees are covered by the National Training Wage system that is included as a schedule in most awards. National Training Wages will also be increased by 3.3% from the first pay period on or after 1 July 2017. Piece rates will increase in accordance with the relevant provisions in the modern award, pay scale or transitional award.
  • Supported wage system – employees with a disability: these employees are paid a percentage of the relevant adult wage, based on their assessed capacity. The 3.3% increase will also flow through to these employees.

GST

Rental Property Deduction Crackdown

First Home Saver Scheme to Commence

Voluntary super contributions made from 1 July 2017, will be able to be withdrawn as a deposit for a first home. More information.

Superannuation

Single Touch Payroll

Available for some employers