From 1 July 2019, all the business in Australia who has one or more than one employees will need to adapt the framework of Single Touch Payroll. There are many articles, youtube videos or Podcasts on the Single Touch Payroll, in this article, we will try to simplify the Single Touch Payroll and explain how it will affect your business.
Please see the video below to understand more about the Single Touch Payroll.
Let us compare the payroll frameworks of Before and After 1 July 2019 for the company which has less than 20 employees.
Before 1 July 2019
As an employer, you just need to pay your employee the wages, pay them the super guarantee, work out the correct entitlements, and withheld the correct PAYG withheld, and then issue them a payslip.
You then need to pay the PAYG withheld to the ATO on a quarterly basis along with other PAYG you had withheld, and only need to tell ATO whom you had paid to, the name, tax file number, address, PAYG withheld, the amount of Super Guarantee you had paid, and which super you had paid to. You only need to do this at the end of the financial year through PAYG summary report, at the end of the financial year, you need to issue your employees a PAYG summary and lodge the PAYG summary to the ATO.
After 1 July 2019
If you have one or more than one employees from 1 July 2019, every time you pay your employee/s, you need to do the all above plus you need to notify the ATO on the wage payment cycle, the following information, the name of the employee you had paid to, amount of gross wage, payg withheld, super guarantee amount, the super company which it was paid to.
The information needs to be uploaded to the ATO on the wage payment cycle via an approved software platform, hence if you pay your employee weekly, then you need to do all these weekly, the same applies for fortnightly or monthly basis.
If you miss any of the lodgement deadlines, then there might be a failure to lodge penalty of maximum of 5 units, each unit is around $210 for each time you late in lodging the Single Touch Payroll, then the penalty might be about $1,050, and if you pay your employees on a fortnightly basis and have 5 employees, then it will amount to a potential penalty of $136,500.00. Please refer to the failure to lodge penalty on the ATO website.
Hence if you have even one employee, the reporting requirement is quite demanding, if you are not careful, you might end up in big trouble. As a specialist in Single Touch Payroll, EndureGo Tax would be in a position to help your business to meet the Single Touch Payroll Requirement, we will provide a half with an hour free consultation to business to work them through or plan it through ways we should transform the business to meet the Single Touch Payroll Obligation. Please give EndureGO Tax a call on 0410-829-900