Single touch payroll

Back to News
ATO mattersMYOB / Xero /Cloud accounting softwarePayroll

Another step towards simplifying payroll reporting obligations for your business

As accountants and bookkeepers are well aware – many small businesses encounter the problems of correctly reporting payroll information to the Australian Taxation Office (ATO), which can sometimesPayroll on black keyboard with blue key lead to a time consuming and costly process.

Recently, the Minister for Small Business has announced a Government initiative to simplify the tax and superannuation reporting obligations of Australian Businesses. An online application called “Single Touch Payroll” will be able to report directly from a business’ accounting software to the ATO as employees are paid.

What does this mean for your business?

As the ATO continues to build more efficient methods of correctly recording PAYGW tax and Superannuation paid on behalf of employees, Single Touch Payroll will now act to eliminate reporting discrepancies, saving time and money for your business.  PAYGW will be directly streamlined to the ATO eliminating the need for this to be reported in your Business Activity Statements.  While Tax File Number declarations and Super Choice forms for new employees will be digitally streamlined and accessible with the software – saving further time spent on the payroll process. A direct reconciliation between the employers payroll figures and the ATO’s reported data will mean that any discrepancies can quickly be accounted for and corrected.

When will your business have access to the new system?

Single Touch Payroll will be available from July 2016 when the transition process will begin to take place. During this time the ATO and Treasury will look to consult with the business community regarding the phasing in of this new initiative. For further information on how Single Touch Payroll benefits can be implemented in your business be sure to seek advice from your accountant.

Contributed by

Rick Filocamo -Accountant

Optima Partners, March 2015

 

Optima Partners offers support to all businesses. Whatever your requirements

For more information on how Optima Partners’ services can help your business, contact the team at info@optimapartners.com.au for a consultation.

Latest News

Cash flow crunch: SIC, GIC and super guarantee increase
Small and medium businesses could be facing a cash flow crunch in the wake of...
Planning for EOFY 2024-25
With the end of the 2024-25 financial year in sight, the time has come again...
2025 Federal Election: Key tax changes under Labor’s second term
The Australian Labor Party has declared victory in the 2025 Federal Election, establishing a second...
Sustainability reporting: ASIC urges SMEs to brace for impact
The Australian Securities and Investments Commission (ASIC) has reminded small and medium entities to be...
Key Dates: May 2025
15 May: Lodge 2024 tax returns for all entities that did not need to lodge...
Understanding business structures: tax, liability and asset protection
Your chosen business structure has massive implications for your tax liability, asset protection and cost....
New GST reporting rules for small businesses
The Australian Taxation Office (ATO) recently announced that over 3,500 small businesses will be moved...
Optima Partners to host 4th annual Perth Car Club meet
Optima Partners is proud to host Perth Car Club’s fourth annual anniversary meet-up at our...
Key Dates: April 2025
21 April: Lodgement and payment of March 2025 monthly business activity statement 21 April:...
Selling your business: Best practices
Selling your business is a major decision and a milestone in your career. Whether you’re...