Are you aware that ALL employers will be required to report all payroll data electronically to the ATO NO LATER than 1 July 2019. If your Group employs more than 20 employees as at 1 April 2018 you will be required to commence this electronic reporting from 1 July 2018. All businesses must conduct an employee headcount on 1 April 2018 to determine when you need to move to Single Touch Payroll reporting.
The ATO has mandated that when an employer pays their employees, the payroll information MUST be sent to the ATO from their payroll solution. You will NOT be able to submit this information manually.
It is important to understand that this reporting is considerably more extensive than the current payroll reporting to the ATO. We are reviewing and updating our solution to capture the additional information. Prior to commencement we recommend you review all payroll data to confirm accuracy of information (TFN, email addresses, addresses, etc)
Single Touch Payroll also introduces new reporting obligations for new employees or “onboarding”. This includes questions such as:
- Are you a Working Holiday Maker – Yes or No
- Are you Full Time, Part Time, Casual or Labour Hire – F or P or C or L
- Are you an Australian Citizen
- If not are you a Resident or Non-resident – R or N
- Are you claiming a Tax Free Threshold – Y or N
- Are you claiming a Senior Australian Tax Offset – Y or N
- Do you have a Higher Educating Loan Program – Y or N
- Do you have a Trade Support Loan – Y or N
- Do you have a Student Loan – Y or N
- Are you claiming a Zone Rebate – Y or N
- Are you claiming an Overseas Forces Rebate – Y or N
- Are you claiming a Special Rebate – Y or N
Zavanti is working to ensure that our solution is compliant with ATO requirements. To assist in managing the employee data we are also upgrading our mobile application to include employee self-service capabilities.
Zavanti will also provide a facility for you to lodge your information with the ATO in a secure and easily manageable process.
Benefits to Employers include:
- You will send payroll information to the ATO at the same time as your standard pay runs. This will help save time and resources for businesses at the EOFY because you have already submitted payroll information to the ATO throughout the year.
- The ATO will pre-fill payroll fields W1 & W2 in your BAS because they already have the information from you, reducing potential errors and double handling.
- You will no longer be required to generate and distribute payment summaries to employees as this information will be available online via myGov.
- On-board new employees quickly with online commencement forms using Zavanti Mobile including Tax File Number Declaration and SuperChoice.
Benefits to Employees include:
- Get up to date access to payments and contributions via MyGov including superannuation, income and tax.
- Your payroll information will pre-fill in your tax return, making it easier and quicker to complete as you won’t need to wait for a payment summary from your employer.
- Electronic commencement forms including a pre-filled Tax File Number Declaration and SuperChoice form makes starting a new job easier.
What do you need to do?
- Conduct a count of employees as at 1 April 2018 to determine when you need to commence electronic reporting under STP.
- Review your current payroll processes to confirm compliance with STP prior to its commencement.
- if you are currently using paper contact us to discuss how we can assist.
- Review your employee database to confirm its accuracy, including – Full name, TFN, date of Birth and address.
For more information download the ATO paper describing the new information requirements from this link – STP_information_for_DSPs_pdf