Single touch Payroll Lodgment is a revolution in the way the employers report their PAYG and information to the ATO. The business owners are required to report to PAYG after the payroll event has been processed. The report is not provided every four or six months but most of the time, it is given after a year. Not only PAYG but super information is also provided which was not required previously.
Why your business needs a single touch payroll?
It is necessary for every business to use this system unless you are facing extreme situations where it is very hard for you to fulfill the requirements. For instance, if you live in a remote area or you don’t have access to the internet connection.
The biggest advantage of single touch payroll for employers is that it can simplify the procedure of reporting to the ATO by submitting the payroll information after completion. By doing this, the ATO will automatically pre-fill the BAS for the employers by removing all the mistakes and double information. In addition, the need to create and allot the payment abstracts may be rejected as well because this information will be available online.
The ATO can allow the owners to gather the tax file declaration and other information online when hiring new workers. When the time to lodge the BAS will come, it is crucial to check the W1 and W2 pre-filled statistics with great care. As you know that everything is checked carefully but there are chances that errors can still occur. If you have made any changes in the payroll then rechecking is a must and you should not submit the information until you are satisfied.
If you have 20 or more workers that work under you then you have to use the single touch payroll from July 1. If you have fewer workers then still, you have to use it from the same date. You have to do the “headcount” in the month of April to know how many workers you have. Even if the numbers will drop after July, you will be considered a significant owner and you will have to use the STP reporting. It is a great idea to check how many workers you have in your office with the help of your Bookkeeper Close To Me. If you have 18 workers then your bookkeeper must be ready on 1 July.