Tax and superannuation reporting obligations have just gotten easier and digital! What does this really mean, one might ask?
On 28th December 2014 the Minister for Small Business, Bruce Billson MP, and the Assistant Treasurer, Josh Frydenberg MP announced the introduction of a ‘Single Touch Payroll’ system.
Under this new interactive tool, accounting software will automatically report payroll and super information to the ATO when employees are paid.
This will eliminate the need for employers to report Pay As You Go withholding (PAYGW) in their activity statements throughout the year and payment summaries at year end.
With this exciting new initiative, when new employees start super funds and government agencies are notified. This also works in reverse when employees leave. In addition, TFN declarations and Super Choice forms will also be streamlined digitally. Single touch payroll should help reduce paperwork and it will build on the ATO’s ongoing initiatives to improve the current reporting practices of businesses.
The ATO envisages that Single Touch Payroll will be implemented by July 2016. To meet their obligations under Single Touch Payroll, employers would be required to use, and if necessary acquire, appropriate payroll software. In utilising appropriate accounting software to meet your needs , feel free to talk to one of our friendly advisors at Optima Partners.
Single Touch Payroll has great potential and is only part of the ATO’s bigger plan for the evolving business sector!
Contributed by
Melinda Wong,
Accountant,
Optima Partners, April 2015
