Is your Brisbane business ready for Single Touch Payroll

Is Your Brisbane Business ready for Single Touch Payroll?
August 6, 2018 Toohey Reid

Are you running a business with 20 or more employees? If so, this concerns you. Single Touch Payroll came into effect as of July 1, 2018, and there are a few things you need to do to ensure you’re reporting correctly. The good news? We’re here to help! Keep reading to find out what Single Touch Payroll is, whether or not it affects your business, and how to get ready for the change.

The lowdown: What is Single Touch Payroll?

Single Touch Payroll is said to be the next step in streamlining your payroll reporting. Business owners now have to report all payments such as salaries and wages, and Pay As You Go (PAYG) withholding and superannuation information, each time they pay their employees. This change was implemented on July 1, 2018.

Although now you will be reporting all payments each time you pay your employees, your payroll cycle will not change, meaning you can still pay your employees weekly, monthly or fortnightly.

Software Integration

In terms of software, nothing will change – you can continue to use the same payroll software as you have in the past. As long as it has been updated to offer Single Touch Payroll reporting.

Not sure if your software has been updated to offer Single Touch Payroll reporting? Some software providers were granted a deferral for the updating of their software. To ensure your software has been updated to include Single Touch Payroll reporting, contact your provider.

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Who counts and who doesn’t?

It might sound silly, but counting your employees is more difficult than you might think. Although you won’t need to report the number of your employees to ATO, you will need to conduct a headcount of people working for you.

You will need to include the following types of employees in the headcount:

  • Full time and part-time employees.
  • Casual employees who were on your payroll on April 1, 2018, and who worked during March 2018.
  • Employees based overseas.
  • Any employee who is on leave or absent (including paid or unpaid leave).
  • Seasonal employees who are engaged to meet requirements during peak times.

Do not include the following employees:

  • Employees who ceased work before April 1, 2018.
  • Casual employees who did not work in March 2018.
  • Independent contractors.
  • Third party labour hire staff.
  • Company directors.
  • Office holders.
  • Religious practitioners.

What if I have less than 20 employees?

Depending on legislation, Single Touch Payroll may come into effect for employers with 19 or fewer employees next year, on 1 July 2019. In the meantime, smaller operators are welcome to voluntarily use Single Touch Payroll systems if they wish.

Still not sure about Single Touch Payroll and how it will affect your business? Contact Toohey Reid today to discuss your options.

General Advice Disclaimer

General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

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