From 1 July 2018, all Australian companies with 20 or more employees will need to be compliant with Single Touch Payroll. This change affects both MYOB Exo Employer Services Payroll and MYOB Advanced People customers. Find out more about Single Touch Payroll and what you need to do to ensure compliance with this significant change.
What is Single Touch Payroll?
Single Touch Payroll is part of the Australian government’s Digital by Default agenda, a significant initiative to modernise and streamline the way government interacts with businesses. It means that salaries and wages, PAYG withholding and superannuation information is reported to the Australian Tax Office directly from your payroll solution.
What it means for Employers
Whilst many organisations are viewing STP as a compliance issue only, it does bring with it many opportunities to streamline your reporting processes, including easing the end of financial year time crunch and quarterly filing. Single Touch Payroll involves not only changes to software but changes to your way of working. The processes you follow for each pay cycle will change to meet this new reporting standard.
You will need to prepare for this change. The first action employers will need to take is a headcount of the employees they have on their payroll on 1 April 2018. If an employer has 20 or more employees on that date they will be classified as a ‘substantial employer’, and they will need to report through Single Touch Payroll from 1 July 2018. Employers with 19 or fewer employees, Single Touch Payroll reporting will be optional until 1 July 2019, when it will become mandatory (subject to legislation being passed in parliament).
MYOB has been working to build STP functionality into its payroll products. The release schedule for Single Touch Payroll is set for mid/late April 2018 and Enprise is here to help you prepare for the change and ensure you are compliant by 1 July 2018.
More information for Employers on the ATO website
What it means for employees
Employees in organisations with more than 20 employees will be able to see up-to-date tax and super information in ATO Online Services via their myGov account after 1 July 2018. By reporting this information to the ATO via Single Touch Payroll at the same time as their employees are paid, employers will not have to provide employees with PAYG payment summaries as the information will be available via myGov.
More information for employees on the ATO website
Enprise will communicate directly with our Exo Payroll and Advanced People customers when more information becomes available.
If you have any questions, please don’t hesitate to get in touch with your Account Manager, or the Enprise Support Team: call us on 1800 436774 or email us.
You can also find more information about Single Touch Payroll on the ATO website