Proposed changes will streamline the way employers report some tax and information to the ATO. When employers pay their staff, the employee’s salary or wages and PÄYG withholding amounts will be automatically reported to the ATO.
Employers will also have the option to pay their PAYG withholding at the same time they pay their staff. There will also be some changes to how super is reported to the ATO. There will be no changes to the way employers pay their super. However, when those payments are made to their employees’ funds, the information will be automatically reported to the ATO.
The ATO will be assisting businesses to transition to Single Touch Payroll. Below are the important dates:
- Employers with 20 employees or more will be able to report to the ATO through Single Touch Payroll from 1 July 2017. However, they will be required to report from 1 July2018.
- Employers with 19 employees or less will be able to report to the ATO through Single Touch Payroll from 1 July 2017. However it is not a requirement at this stage. The ATO will be running a pilot with small businesses soon. This will help them understand their needs and explore the benefits of Single |touch Payroll for small businesses. In addition, employees will also have access to pre-filled forms including TFN declaration and super choice when they start a new job. This would be through their myGov account.
This article appeared in our April 2017 newsletter