What is Single Touch Payroll? How is it beneficial for the employees?
Single Touch Payroll has been in the pipeline for a few years now but it is recently that the ATO has made it mandatory for the SMEs to adopt. Usually, businesses report the payroll only once a year to the ATO, whereas now they would be required to do so after each pay day in a digital format while using a specific arrangement called Standard Business Reporting (SBR). This move by ATO signifies to make the Australian tax system smarter, more automated and more efficient.
The Benefits to the Employee:
For employees like you, in terms of visibility of pay, tax and super, life just got easier.
- The ATO will update the total year to date salary (YTD) of an employee on its myGov portal each and every time of their pay. It will also show the PAYG withholding amounts and super guarantee contributions as they accumulate. This means the employees will have more access to their pay and taxes in a timelier manner, plus they can check if their Super is being paid correctly.
- New employees can complete TFN Declarations and Super choice nominations online for a more streamlined digital process.
- With Single Touch Payroll being adopted, the ATO will be able to pre-fill BAS for employers. This would reduce the potential of human error and double handling.
- The ATO will automatically track all the figures taken from the STP submissions and make them available on their myGov portal. This means the employees can access their payment information directly, hence, they won’t have to generate and distribute payment summaries saving their time and money at a crucial time- end of financial year.
However, make sure your pay is correct every time. Check with your Pay Advisor.