From 1 July 2018 all employers with at least 20 employees were required by the ATO to comply with the Single Touch Payroll system. From 1 July 2019 Single Touch Payroll will be compulsory for all employers.
What is Single Touch Payroll?
Single Touch Payroll essentially works to provide all employee wage, superannuation and PAYG information directly to the ATO in real time as they are paid. You can access more detailed information on the ATO Website here.
Should I Voluntarily Switch Early?
It should be noted that you can voluntarily switch to Single Touch Payroll before it becomes compulsory in July next year. Voluntarily starting to use Single Touch Payroll could be helpful for your business as it will allow to set up and test this system at your pace. This means you will not be rushed to set everything up just before your first pay run in July 2019. Many accounting software providers have released updates to their systems which can allow you to begin using Single Touch Payroll.
How Can I Find Out More?
You can find out more about how you can setup your Xero file for Single Touch Payroll here. The link also provides a helpful overview video and allows you to register for a webinar.
If you would like us to help you setup your Xero file for Single Touch Payroll or would like to find out more please contact us.