Businesses need to be aware of big changes afoot with the implementation of the Government’s proposed Single Touch Payroll. Under Single Touch Payroll, employers will be required to electronically report payroll and superannuation information to the ATO at the point when employees are paid using Standard Business Reporting-enabled software.
According to the Government, Single Touch Payroll would cut red tape for employers and simplify tax and superannuation reporting.
Single Touch Payroll is expected to be launched in July 2016. In a brief public consultation period, the ATO highlighted the potential impacts that the implementation of Single Touch Payroll could have on employers. Businesses or their payroll providers may be required to either purchase or upgrade existing software, potentially at an additional cost. Another concern is the immediate impact on cash flow, particularly during transition.
Submitted by: Matthew Muscat – Senior Accountant
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