Single Touch Payroll
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 Deferral
LEVESYS has been granted a deferral by the ATO to the commencement of Single Touch Payroll (STP) until March 31st 2019. As a LEVESYS customer on V3.84 or V5.1.10, your company will also receive an automatic deferral.
Single Touch Payroll Development Program
LEVESYS have completed work to generate all the necessary files for transmission to the ATO. We are at the point of establishing connections with the ATO and conducting the trials, once the ATO has completed some initial assessments.
- Payrun data extract in accordance with ATO file elements
- Generation of conforming file for transmission
- Messaging application for communication with ATO systems:
- Integration of an open source application
- Connection to ATO environment
Testing / Documentation:
- Functional testing of data load and file production
- Targeting completion of ATO acceptance tests and certification
- Compilation of implementation and process documentation
- Customer testing / beta site rollout following ATO certification
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.