Single Touch Payroll is an Australian Government initiative that came into effect on 1 July 2018.
Medium or large companies with 20 employees or more are required to report electronically to the Australian Tax Office on salary or wages, PAYG withholding and superannuation at the same time they pay their employees.
On 12 February 2019, the Treasury Laws Amendment (2018 Measures No.4) Bill was passed in Parliament. This means that businesses with 19 employees or less employees will be required to report under Single Touch Payroll from 1 July 2019.
The Australian Tax Office has said “Different reporting options will be available by 1 July 2019 to help smaller employers. However, we won’t force employers with 19 or less employees to purchase payroll software if they don’t currently use it.”
The ATO says that there will be a number of options available for micro employers (1-4 employees), including low-cost solutions at or below $10 per month or allowing them to report quarterly through their Tax or BAS Agent, rather than through payroll software. The ATO has asked software developers to build these low-cost solutions which will be available by 1 July 2019. There will also be exemptions for businesses with no internet or unreliable connections.
We will keep you up to date on the new solutions as they become available.
If you have any questions or would like to discuss suitable software or integration with your existing payroll software, please feel free to contact us.
Update 14th February 2019
ATO Commissioner Chris Jordan has announced that there will be a 3 month extension until 30th September 2019 for small businesses to commence STP reporting.