Single Touch Payroll, an initiative of the ATO, is being introduced to provide real time visibility over the accuracy and timeliness of organisations’ payroll processes.
Commencing 1 July 2018 for large employers (20 or more employees) and 1 July 2019 for smaller employers, the ATO will receive payroll information including salaries and wages, pay as you go (PAYG) withholding and super information at the time of a “Pay Event”. A PayEvent is each time you pay someone and you should be generating a pay slip.
Payroll software providers are currently updating their packages to facilitate this exchange of data. The ATO are considering other reporting mechanisms for employers that do not use accounting software or the internet.
Employees will be able to link their myGov account to the ATO and be able to access their year to date payroll information and expected superannuation contributions. The ATO will be able to pre-fill employee’s tax return with the payroll data provided throughout the year.
As we move towards the date of introduction the Evolve team will be working with their bookkeeping clients to ensure the integrity and accuracy of payroll information held within their Xero account files. Please do not hesitate to contact us if you have any queries in the meantime.