Single touch payroll (STP), the next move by the Australian Taxation Office to streamline payroll reporting, is scheduled to take effect from 1 July.
The ATO says it will write to employers this month to inform them of what this will involve.
Those who employ 20 or more people will have to use STP-enabled software to report the tax and superannuation information of their employees to the tax office.
A statement quoted ATO assistant commissioner John Shepherd as saying that digital service providers would have to be ready to advice and support employers in the run-up the process becoming mandatory.
{loadposition sam08}“Digital service providers play a vital role in ensuring their users have the right information at the right time to adequately prepare for single touch payroll," Shepherd said.
"It’s likely you’ll receive an increasing number of enquiries from current and prospective users in the coming weeks and months.
“As a first step, digital service providers should advise users when their product will be
single touch payroll-ready, and encourage them to visit www.ato.gov.au/stp to download the ‘Get ready checklist’.
"If you have applied for a deferral the ATO will issue you a letter which you can provide to your users to confirm the deferred start date.
“We know that some users may not be ready to implement Single Touch Payroll by 1 July 2018, or your deferred start date. They should apply for their own deferral.
“We’ll also continue working closely with digital service providers over coming months to ensure that single touch payroll can be successfully implemented.”