August 2017 - Update

Employers with 20 or more employees will need to start reporting through Single Touch Payroll from 1 July 2018.

Employers will be able to report salary or wages, pay as you go (PAYG) withholding and super guarantee information directly to the ATO from their payroll solution, at the same time they pay their employees.

The ATO is working with solution providers including EmpowerHR to implement Single Touch Payroll through Standard Business Reporting (SBR) software using the SBR2 channel.

It is likely that Fusion5 will work with an intermediary to provide this service for our payroll products including EmpowerHR.

NOTE:  This is subject to change as the ATO have not finalised the full requirements across all the components of STP - payroll events, employee commencement events, update events, and superannuation reporting. 


June 2017 - Update

Single Touch Payroll is a government initiative to streamline business reporting obligations.

From 1 July 2018, employers with 20 or more employees will be required to report salary and wages, pay as you go (PAYG) withholding and super information to the ATO from their payroll solution at the same time they pay their employees. There will also be options for employees to complete tax and super forms online.

We are currently reviewing the ATO’s scope of requirements and determining what development work will be required in EmpowerHR and then scheduling that development work.

Once we have completed the analysis and planning we will be able to provide a further update to our customers. We have an ATO development account manager who will be assisting us to work through the Single Touch Payroll development requirements.

We are planning for a legislative release of EmpowerHR in April / May 2018 to cater for Single Touch Payroll requirements.

Direct Payroll Reporting

Single Touch Payroll (STP) will streamline business reporting obligations, and make it easy for employers and tax practitioners to report to the ATO.

Employers will report salary or wages, pay as you go (PAYG) withholding and super guarantee information to the ATO directly from their payroll solution, at the same time they pay their employees.

Superannuation Reporting

Information will be sent to the ATO when an employer pays an employee’s super guarantee contributions to their nominated fund(s).

NOTE: This is subject to change as the ATO have not finalised the requirements for the employer or super fund to submit this data.

Streamlined Reporting Obligations

Single Touch Payroll will align an employer’s reporting with their natural business cycle process for example, when they run their payroll.

Salary or wage information and PAYG withholding amounts reported through Single Touch Payroll will be pre-filled into the employer’s BAS.

Employers or their tax practitioner will still have the ability to adjust or correct information in their BAS.

Employee End of Year Pay Information

Employers who report an employee’s details through Single Touch Payroll will not have to provide that employee with a payment summary at the end of financial year. They also won’t be required to provide the ATO with a payment summary annual report for those employee’s details.

Employers will need to notify the ATO when the end of financial year data is considered final.

The ATO will make payment summary information available to employees and their tax agents through myGov and this will pre-fill the employees tax return. The ATO will provide assistance to those employees who have difficulty accessing information online.

Online Forms for New Employees

Employers will have the option to invite their employees to complete tax file number declaration and super standard choice forms online.

More Information Online for Employees

Employees will be able to see their tax and super information online through myGov as their employer transitions to reporting to the ATO through Single Touch Payroll.

Q: Aren’t some employers using Single Touch Payroll already?

A:  Yes, there is a closed pilot group who are using an early version of the pay event reporting service. This will help finalise the specifications for general availability in 2018 – in particular the handling of corrections and updates.

 

Q: What do we need to do to be ready for this?

A:   Read the following information, provided by the ATO around Single Touch Payroll.

 

Q: What will Fusion5 be providing?

A:  Fusion5 will provide a release of EmpowerHR that will send the required information to the ATO.

 

Q: Will EmpowerHR automate the submission process?

A:  Yes, EmpowerHR will generate the information required and automatically send it to the ATO.

 

Q: How will this change our use of EmpowerHR?

A:  The change is likely to be how amendments and corrections are made to previously submitted information. The ATO are still finalising how this will work. 

Further information will be provided on this.

 

Q: How will the employee onboarding process change?

A:  The ATO are still the finalising the design here and it is likely the current processes will be streamlined.

Further information will be provided on this.

 

Q: When will we have a version to test this?

A:  In April / May 2018.

Note that prior to this, we will have already gone through a test / certification process with the ATO.

We are working on the development of the functionality required for the Single Touch Payroll. This is expectes to be ready for testing in late 2017 / early 2018.

We are planning for a legislative release of EmpowerHR in April / May 2018 to cater for Single Touch Payroll requirements.

We will provide regular updates on this website.