Single
Touch Payroll
Accumulating
hidden liability due to payroll run is an everlasting cash flow burden for the
employers. Looking for cash balance to meet the activity statement payables or
superannuation contribution is a nightmare. Tom and Jerry play between
ATO debt collection services and the employer begins once the payable amount
arrived upon submission of activity statements.
To ease
the burden of the employers, ATO working out a new payroll model, called Single Touch Payroll or One Touch Payroll.
Highlights
of Single Touch Payroll:
- Fortnightly pay run applicable to all employers, 26 pay cycles in a financial year
- Real time data updated with employers' account with ATO
- Payments to be made during pay run:
- net pay to employees,
- PAYG to ATO &
- Super contribution to Super choice fund.
Advantages
of Single Touch Payroll:
- No accumulation of tax and super liabilities
- TFN declaration, PAYG Annual Summary & Instalment Activity Statement reports may be deferred
- Employees can get their income tax return pre-filled and ready for No Touch
ATO plans
to deliver the program in line with their goal of Digital by Default,
encouraging software developers especially payroll developers to incorporate
the program within their software. Standard Business Reporting is going to be
the data transmitting technology.
GovReports
keenly observing the program and will take appropriate action when the program
is fully designed and released for software developers. Watch this space to
know more about Single Touch Payroll.
More info: www.govreports.com.au
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