Single Touch Payroll starts on July 1
What is Single Touch Payroll?
Single Touch Payroll is a new streamlined way to report employee payroll data electronically to the ATO. Single Touch Payroll reporting starts from 1 July 2018 for companies with more than 20 employees, based on a headcount at 1 April 2018. From July 1 2018, you will need to report to the ATO employee’s payroll information including salaries and wages, PAYG withholding, allowances, deductions and other payments and super information at the same time that you pay your employees.
The move to Single Touch Payroll means you will now need to report to the ATO at every pay event, instead of at financial year end. You will no longer need to complete annual payment summaries, this will already be done as part of Single Touch Payroll reporting and will be available to your employees via the myGOV website. There is no need to change your payroll frequency and payment due dates for PAYG withholding and superannuation contributions don’t change.
From 1 July 2019 companies with less than 20 employees will also be required to report via Single Touch Payroll, subject to legislation passing through parliament.
To learn more about Single Touch Payroll go to the ATO website.
Single Touch Payroll Readiness
LEVESYS has been part of the industry consultation with the ATO around Single Touch Payroll since the initial consultations were held in 2014-15. The ATO has mandated that reporting must be done electronically via a payroll system. If you currently do not have a software solution in place and had more than 20 employees on your payroll on April 1 2018, you need to choose a software solution that is Single Touch Payroll compliant and have it implemented prior to the July 1 reporting deadline.
All LEVESYS payroll solutions will be ready to report your payroll data electronically from the mandated July 1 commencement.
Single Touch Payroll Development Program
- Payrun data extract in accordance with ATO file elements are complete
- Generation of conforming file for transmission to be completed the end of April
- Messaging application for communication with ATO systems:
- Integration of an open source application in place
- Connection to ATO test environment established
Testing / Documentation:
- Functional testing of data load and file production commences week starting 9 April
- Targeting completion of ATO acceptance tests and certification by 30 April
- Compilation of implementation and process documentation in progress
- Customer testing / beta site rollout following ATO certification starting early May
How Payroll Data is Transmitted
The implementation involves only minor changes to the core LEVESYS payroll application. The majority of work is around developing the file outputs that conform with the ATO’s specifications and putting the application in place for communicating with the ATO to transmit files and receive confirmations and error messages.
Release documentation will address each of these elements of the process in detail. Your AUSKEY credentials will be an important component for authenticating your connection to the ATO for transmission of the pay event files.