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Single Touch Payroll

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From 1 July 2019, all Australian employers are required to comply with the new Single Touch Payroll requirements. Employers will need to report salary, PAYG withholding and superannuation information to the ATO when each time they pay their employees.

 

Legislation has already been passed. The Single Touch requirements will extend to all employers regardless of the number of employees, including the sole traders and partnerships who have to pay their staff, and the businesses which operate through a company or trust structure and have to pay their staff or directors. The new requirements do not apply to the sole traders or partnerships who simply withdraw income from the businesses. Payments to ABN contractors are not covered by the new requirements.

 

Employers will not need to change the payroll cycle such as weekly, fortnightly or monthly. The PAYG withholding and superannuation payment due dates will remain the same. After Single Touch Payroll is fully implemented, employees will no longer receive payment summaries.

 

 

Meeting the new payroll requirements

 

In order to meet the new Single Touch requirements, employers will need to ensure that their accounting or payroll software are Single Touch ready.

 

Businesses who are currently using classic desktop MYOB software or outdated accounting software may take this opportunity to upgrade their accounting systems. Classic MYOB including Account Right v19 or earlier will need to be upgraded to the latest Account Right online to comply with the single touch requirements.

 

Cloud based accounting software such as MYOB Essentials, MYOB Account Right online and Xero are Single Touch ready. These users will only need to have their software set up properly for the new requirements.

 

Both MYOB and Xero are also launching payroll-only software to enable employers to meet the Single Touch requirements.

 

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How we could assist you

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If you are currently using Xero or MYOB online software, we will work with you to set up the software. If it is necessary for you to upgrade to a different version of Xero or MYOB in order to meet the new requirements, we will let you know.

 

If you are using classic desktop MYOB, you are required to upgrade to MYOB Account Right online first (either Plus or Premier), then, set it up for Single Touch Payroll.

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We can certainly assist you to upgrade your MYOB software or migrate your desktop MYOB software to online MYOB or Xero software. If you have any queries, please feel free to contact us.

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Vincent Wan

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CPA, Registered Tax Agent

March 2019

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