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 sometimes 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.
Rick Filocamo -Accountant
Optima Partners, March 2015