Is your business compliant and ready to take full advantage of the automation?
Parliament recently passed legislation that requires all employers, regardless of size, to electronically file payroll information with the tax office using Single Touch Payroll. If you run a business then this affects you.
The government initiative is a step in the right direction for Australian businesses. Given the current state of play and requirement to comply with the new Single Touch Payroll legislation, it’s an ideal time to transition to cloud-based digital tools. Embracing digital technologies will allow your business to take advantage of a streamlined and simplified reporting process and could help you discover efficiencies in your day-to-day operations. According to a study by Microsoft, cloud solutions can decrease small business workload by at least 42%.
The move will also ensure all staff members receive their full superannuation entitlements and will provide employees with real-time and instant access to their payroll information when they need it.
For some small business owners, there may be some resistance to the change. After all, adopting any new process can be difficult. But the move to a cloud-based digital reporting solution could save your business hours of time and simplify your life.
In this guide, we answer your questions about Single Touch Payroll changes to help you prepare your business for the move.
What is Single Touch Payroll?
Single Touch Payroll is a new requirement that requires employers to send payroll information, such as tax and super, electronically to the ATO each time payroll has been processed. This means no longer having to lodge payment summaries to the ATO at the end of the financial year.
Who is required to become Single Touch Payroll compliant?
If you’re an employer with 20 or more employees, then you must already be compliant with Single Touch Payroll regulations - this was due by 1 July 2018, unless the ATO has granted you a later start date (a deferral).
Employers with 19 or fewer employees have the option to report through Single Touch Payroll for now. Legislation is currently before parliament to extend Single Touch Payroll to all employers from 1 July 2019. So, regardless of which category your business fits into, Single Touch Payroll is something you need to be on top of.
How do I become Single Touch Payroll compliant?
Firstly, you need to ensure that your payroll software provider has upgraded its systems to make it possible to lodge Single Touch Payroll directly with the ATO. Well-known providers such as Xero already have this feature available to their clients, making the transition fairly painless.
If you process your payroll manually or within a system that doesn’t support Single Touch Payroll, you’ll need to find a means to convert the data into a compliant digital report format and submit it on your behalf. You might consider switching to software like Xero to make this efficient and compliant in the long term.
How can I get help?
The new regulations may require you to find a new service provider or move to online payroll software that complies with Single Touch Payroll.
At BlueRock we specialise in getting our clients ready for Single Touch Payroll requirements whether that be through implementation of new software or setup through your current provider.
To find out how you can become Single Touch Payroll compliant quickly and painlessly, get in touch with BlueRock. Our team of Accounting and Digital experts will help you transition your payroll process to a cloud-based system, enabling you to discover efficiencies in your business and ensuring you avoid any unnecessary fines.