Single Touch Payroll
Sage Roadshow, 6 April 2017
Presented by Michael Karavas, Director Single Touch Payroll, Australian Taxation Office
What is Single Touch Payroll?
›
Under Single Touch Payroll employers will be able to report salary or wages, PAYG withholding and super
information directly to the ATO from their payroll solution, at the same time they pay their employees.
›
Superannuation contribution information can be reported to the ATO when payments are made to the fund.
›
Employers with 20 or more employees are required to report through Single Touch Payroll from 1 July 2018.
We will help employers and payroll solution providers to be ready.
›
It will be phased in gradually over 2017 – 2018. Some employers will be able to start reporting from 1 July
2017 if their payroll solution is Single Touch Payroll enabled. Your payroll solution provider will communicate
with you when they are Single Touch Payroll enabled.
›
Single Touch Payroll includes an optional streamlined process for individuals commencing employment. An
employer can allow their employees to complete their TFN Declaration and Superannuation Standard Choice
forms using myGov or through their business management software.
›
Payroll solution providers are working with us to provide Single Touch Payroll through Standard Business
Reporting (SBR) software.
UNCLASSIFIED – Single Touch Payroll – Sage Roadshow
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The law for Single Touch Payroll
Single Touch Payroll was legislated on 16 September 2016, forming part of the Budget Savings (Omnibus) Act 2016
Who has to report?
›
Employers with 20 or more employees will be required to report using Single Touch Payroll from 1 July
2018.
When do I start reporting?
›
If I have 20 or more employees on 1 April each year I am required to report from the following 1 July.
Which employees do I include?
›
All employees within the ordinary (common law) meaning of ‘employee’ except MPs, religious
practitioners, company directors, contractors.
What and how often do I have to report?
›
Salary or wages, PAYG withholding and super guarantee obligation when I pay my staff on or before payday.
›
Superannuation contributions when they are paid to the fund.
UNCLASSIFIED – Single Touch Payroll – Sage Roadshow
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The law for Single Touch Payroll
What happens if I am not ready or can’t report?
›
The Commissioner can provide a safety net via a limited-time exemption or deferral.
What happens if I make a mistake?
›
A grace period will be provided for corrections to a Single Touch Payroll report.
›
Failure to lodge penalty relief for the first year of compulsory reporting.
What don’t I have to do in the future if I report via Single Touch Payroll?
›
The employer will not have to provide an employee with a payment summary, where they have reported
through Single Touch Payroll.
›
Send the TFN declaration to the ATO if reporting using Single Touch Payroll.
UNCLASSIFIED – Single Touch Payroll – Sage Roadshow
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How Single Touch Payroll works
The employer will pay the PAYG
withholding liability
Salary or wages
Payslip
Bank file
BMS
PAYG withholding liability will be
raised when the BAS is lodged and
will be visible via the portals
Employee
Bank
Employer completes their payroll
run through their Business
Management System (BMS)
BAS
BMS
ATO
Employee data will be visible via
ATO online services and used to
prefill employee tax returns.
Payroll Event
Employer data will be
used to prefill W1 and
W2 on the BAS
Payroll Data
• Salary or wage information
• Tax withheld
• Super Guarantee liability
Matched records will be
allocated to accounts.
UNCLASSIFIED – Single Touch Payroll – Sage Roadshow
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What do employers report under Single Touch Payroll?
Payroll event
Payment Summary
Current transaction
>
>
>
>
STP Payroll
service
Reuse of information
Employer
W1
W2
Employee
TFN Declaration
Employer information
Employee information
Payment information
TFN Declaration information
Payment
Summary
Employers/Intermediaries
Super
Guarantee
>
Prefilled W1 and W2 on the activity statement for Small and
Medium Withholders
Large withholders no longer need to complete W1 on the BAS if
the data has already been submitted using STP
UNCLASSIFIED – Single Touch Payroll – Sage Roadshow
Fin.
Employees/Intermediaries
SBR
123456789
123456789
>
TFN
Declaration
ATO
Prefilled income
tax returns in
myTax for self
preparers
Prefilled income
tax returns via
SBR/PLS for tax
agents.
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Single Touch Payroll super reporting
Employer pays their employees’
superannuation using their existing
SuperStream solution
BMS
Clearing house
Fund portal
> Payment to fund
> Contribution transaction report
> Retain existing error processes
* Subject to design finalisation
ATO
SBR
Fund
Contribution
Transaction
Member
Report
Contribution
Report
Employee data will be
visible via ATO online
services
Tailored messages to
the employer:
e.g. reminder to pay
Member Account Transaction Service
(MATS)
(Transaction Report for ATO)
Contribution Transaction Report Data
> Employer information
> Employee information
> Superannuation contribution
UNCLASSIFIED – Single Touch Payroll – Sage Roadshow
Matched records will be
allocated to accounts.
Matched STP and
SuperStream data will be
used to identify were an
employer may be having
difficulty meeting their SG
obligation
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Benefits to employers and employees
Single Touch Payroll will lead to the streamlining of business reporting obligations, and make it easier for
employers to report to the ATO.
More employees can complete
commencement forms online
Single Touch Payroll will help enable a
more level playing field
Payment summaries won’t need to be
generated by employers using STP
Employees can access more timely tax
and super information online
Business activity statements will be
pre-filled with STP information
Easier for employees to choose their
super fund
UNCLASSIFIED – Single Touch Payroll – Sage Roadshow
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Key dates
From September 2017
Employees can complete their TFN declaration and super
choice forms in myGov subject to their employers payroll
software being Single Touch Payroll enabled (optional)
Individual and employer online screens available
2018
2017
Late 2016/early 2017
STP Pilot for small employers
(19 or fewer employees)
1 July 2017
Employers can report pay event information
subject to payroll software being STP enabled
1 July 2018
Substantial employers are
required to start reporting
through Single Touch Payroll
1 April 2018
Employers count their employees to determine if
they are a substantial employer (20 or more
employees)
From December 2017
Employers superannuation
contributions reported to the ATO when
they are paid reusing their super stream
data (subject to design finalisation)
UNCLASSIFIED – Single Touch Payroll – Sage Roadshow
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Questions?
Further Information
Please contact us if you have any further questions.
[email protected]
For further information about Single Touch Payroll please visit our website:
www.ato.gov.au/singletouchpayroll
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