From 1 July 2018, employers will need to report their employees’ tax and super information to the ATO through payroll software that is Single Touch Payroll (STP) ready. With Single Touch Payroll in Xero, you’ll be able to comply with the new requirements in just a few simple clicks.
What is Single Touch Payroll?
Single Touch Payroll is an Australian Tax Office (ATO) initiative that will require employers with 20 or more workers to report salaries and wages, PAYG withholding and superannuation to the ATO each time they pay their employees. It provides a real time visibility over the accuracy and timeliness of organisations’ payroll processes.
What do I need to do?
Instead of typically reporting payment once at the end of a financial year, if you’re an employer, you’ll have to send information to the ATO with every pay run. This new reporting method will be mandatory from 1 July 2018 for businesses with 20 or more employees. You would have needed to conduct a headcount of your employees back on 1 April 2018. Read more about how to count your employees on ATO’s website.
Are you Single Touch Payroll ready? We are. Contact us today if you need a helping hand.