The Australian Tax Office (ATO) is making a significant change by bringing in Single Touch Payroll to collect payroll and superannuation data from small employers. The question is, what are the benefits?
Primarily, the move to Single Touch Payroll is an effort by the ATO to make the Australian tax system smarter, more automated and more efficient. There are benefits for both employers and employees.
For small employers like you, once the changes are applied (if they haven’t been achieved by 1 July 2019, you have until 30 September 2019 at the latest), there will be several advantages under the new system:
For employees, the visibility of pay, tax and super will make life a lot easier.
The ATO’s myGov portal will be updated with an employee’s total year-to-date salary. It will display PAYG withholding amounts and super guarantee contributions as they accumulate. This means employees will have access to more information in a more timely manner via their myGov account.
Once you are up and running, new employees will also be able to complete TFN Declarations and Super Choice nominations online for a more streamlined digital process.
The ATO will also benefit from having more information on hand. Thanks to the ‘big data’ provided by , 100’s of millions of pay events per annum via the STP gateway, the ATO will now be able to ensure that this massive data set has far greater relevancy and currency than ever before.
For example, the ATO will be active in monitoring employers struggling to meet their PAYG withholding and super obligations and to implement early intervention processes for those falling behind.
Contact us if you would like to discuss STP compliant payroll software