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 were required to start reporting through Single Touch Payroll from 1 July 2018. This was enabled by CloudPayroll on the effective date.
- Employers with 19 or fewer employees will be required to start reporting through Single Touch Payroll from 1 July 2019. This will be automatically enabled by CloudPayroll on the effective date, however, you are able to opt in earlier.
- Employers will be required to report salary or wages, pay as you go (PAYG) withholding and superannuation information to the ATO when they pay their employees.
- CloudPayroll will also include an option for Employers to voluntarily pay the PAYG at time of the payroll via bank ABA file.
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. Your pay cycle will not change. When employers complete their payrolls on CloudPayroll their employees’ salary or wages, PAYG withholding and superannuation information will be sent to the ATO. Your payment due date for PAYG withholding and super contributions will not change, however, you can choose to pay earlier.
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 through 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 or submit the Payment Summary Annual Report (PSAR) to the ATO 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.
Single Touch Payroll and Employees:
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