Under Single Touch Payroll, employers’ accounting software will automatically report payroll information to the ATO when employees are paid.
This will eliminate the need for employers to report employee-related Pay As You Go Withholding (PAYGW) in their activity statements throughout the year, and employee payment summaries at the end of the year.
However, the government has advised that it has become aware that a start date of July 2016 will not be achievable for many businesses.
It also recognises the cash-flow implications for business of real time payments, and will therefore only be consulting further on real time reporting, with voluntary real time payments, as an option.
It has asked Treasury and the ATO to consult with business and the software industry on the scope and timing for the Single Touch Payroll initiative, with targeted pilots maybe starting from July 2016.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.