Single Touch Payroll is a government initiative to streamline business reporting obligations. When an employer pays their employees under Single Touch Payroll the information will be sent directly to the ATO at the time of the payroll.
CloudPayroll will automatically manage this process on behalf of clients as part of its standard service.
- Employers with 20 or more employees will be required to start reporting through Single Touch Payroll from 1 July 2018. This will be automatically enabled by CloudPayroll on the effective date.
- To determine if they are required to report through Single Touch Payroll employers will need to do a Headcount of their employees on 1 April 2018. CloudPayroll will provide this Headcount on 1 April 2018 with Single Touch Payroll to be automatically enabled from the effective date for employers with 20 + employees.
- Employers will be required to report salary or wages, pay as you go (PAYG) withholding and superannuation guarantee information to the ATO when they pay their employees.
- CloudPayroll clients with more than 20 employees may also be able to report payroll and superannuation information to the ATO prior to July 2018 on a voluntary basis.
- If Employers choose to do so CloudPayroll will include an option for Employers to voluntarily pay the PAYG at time of the payroll.
- Employers with 19 or fewer employees may elect to use Single Touch Payroll on a voluntary basis. CloudPayroll will provide an option for these employers to enable Single Touch Payroll should they wish to do so.
Single Touch Payroll and Employers:
Direct payroll reporting
Single Touch Payroll will streamline business reporting obligations and make it easy for employers to report payroll and superannuation information electronically to the ATO. When employers complete their payrolls on CloudPayroll their employees salary or wages, PAYG withholding and superannuation guarantee information will be sent to the ATO.
This information will be sent to the ATO automatically by CloudPayroll when the employees' superannuation guarantee contributions are remitted to their nominated fund (for clients for whom we manage their superannuation). Tools will be provided to enable employers to send this information to the ATO separately for those employers who wish to manage their own employees' superannuation directly.
Single Touch Payroll will align employers reporting cycles with their normal business processes. Salary or wage information and PAYG withholding amounts reported by CloudPayroll on behalf of clients though Single Touch Payroll will be pre-filled into the employers BAS. Employers or their tax practitioner will still be able to adjust information in their BAS.
Employee end-of-year pay information
CloudPayroll clients using Single Touch Payroll will not have to provide their employees with Payment Summaries at the end of the financial year. They also will not be required to provide the ATO with a Payment Summary Annual Report (PSAR). Employers will however need to notify the ATO when the Payment summary data is considered final. CloudPayroll will provide an online tool to enable clients to provide this notification to the ATO.
Single Touch Payroll and Employees:
Online forms for new employees
CloudPayroll and Single Touch Payroll will enable new employees to complete TFN declaration and Superannuation Standard choice forms online and most information will be pre-filled and validated when they start new employment with a CloudPayroll client. This will reduce data entry and validation errors.
More information online
Employees will be able to access more timely tax and superannuation information online through ATO Online services in myGov. A secure myGov account lets individuals link a range of other services all in one place.
Year-to-date and end-of-year
Employees will be able to see their year-to-date salary and wages amounts, the tax that has been withheld and their superannuation entitlements through their ATO Online services in myGov 24/7.
Click here to be taken to the ATO Single Touch Payroll information