Wat are the benefits of Single Touch Payroll? - ARE YOU READY FOR SINGLE TOUCH PAYROLL?

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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.

Single Touch Payroll Employer Benefits

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:

  • Once you are fully online with STP, you will no longer need to provide annual pay (PAYG) summaries to employees and you won’t need to perform the annual reconciliation to the ATO C This will reduce your administration and compliance overheads.
  • The STP data that you provide will allow the ATO to pre-fill the BAS PAYG amount, meaning that element will be maintained accurately on your behalf with no further effort from you.
  • In essence, the natural business processes of paying employees will help you meet the PAYG withholding reporting obligation so you can be more confident you are meeting your obligations.

Single Touch Payroll Employee Benefits

For employees, the visibility of pay, tax and super will make life a lot easier.

mygov website

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

 

 

Wat are the benefits of Single Touch Payroll?

 

 

 

 

 

 

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