Single touch payroll will be a compulsory reporting requirement for employers.
It means employers will report payments such as salaries and wages, pay as you go withholding (PAYGW) and super information from their payroll solutions at the same time they pay their employees, directly to the Australian Taxation Office (ATO).
For employers with 20 or more employees, Single Touch Payroll reporting starts from 1 July 2018.
While the system starts 1 July 2018, the obligation is triggered on 1 April 2018.
The 20 or more Headcount is done on April Fools Day!
The following employees need to be included within the Headcount:
- Full-time employees
- Part-time employees
- Casual employees who are on your payroll on 1 April 2018 and worked any time during March
- Employees based overseas
- Any employee absent or on leave (paid or unpaid)
- Seasonal employees engaged regularly.
When performing the headcount, the following are not included:
- Any employees who ceased work before 1 April
- Casual employees who did not work in March
- Independent contractors
- Staff provided by a third-part labour hire organisation
- Company directors
- Office holders
- Religious practitioners