Businesses that employ staff are currently burdened with a number of tax, super reporting and payment obligations. Single Touch payroll is a proposed ATO initiative that will revolutionise the way businesses report and make payments.
Single Touch Payroll proposes to reduce red tape by simplifying the administration of employee payroll, tax and superannuation requirements by employers. Significant changes are being designed for both employers and employees with the ‘on-boarding’ process being streamlined to determine what efficiencies can be gained as the ATO moves to a digital platform for all business interactions.
Digital ‘real time’ reporting and payments within Payroll and HR are one of the main features of this initiative. By using compatible business software, employers will be required to communicate with a multitude of departments simultaneously to easily produce required information.
It is proposed that Single Touch Payroll is planned to start from July 2016 with a rollout over a two year period, however the final scope is yet to be determined. The ATO has been engaging with various sectors of the business community to understand all considerations before a final announcement.
In order to meet the needs of this change, employers would need to use an approved software solution that delivers on all required obligations and the ATO would need to be ready to handle this type of reporting from all businesses.
Sage MicrOpay is actively involved in regular discussions with the ATO about Single Touch Payroll to ensure that our customers software and time considerations are taken into account.