The Peter Vickers Business Group was founded in 1979 by Peter Vickers – a core strength from day one was accounting. In order to satisfy the needs of our clients we have grown to provide a comprehensive range of financial services. We provide these services to a broad range of clients, across a diverse range of industries and professions, both in Australia and overseas.
No this has not been banned by the Prime Minister…
If you currently pay wages, you will soon be required to be linked to the Australian Taxation Office electronically. All of your staff’s payroll details will automatically go into the ATO computer and your payments of PAYG and superannuation will be monitored continuously.
The first step is that all employers will have to count how many employees they have on 1st April. If you have twenty employees or more then the required reporting for your business starts on 1st July 2018. Employees is the ordinary definition of employee and thus does not include contractors. The twenty is on a head count basis and not full time equivalents. For all other employers the single touch payroll system starts on 1 July 2019.
What do you have to do? You basically just need to use an up to date payroll program which should automatically handle this reporting for you. Currently only about 3% of payroll programs have been authorised to link into the ATO computer. The idea is that the payroll program handles all reporting.
However, employers have to understand that once the ATO computer has the payroll information it will know if your PAYG instalments and superannuation guarantee are paid on time. If they are late then it will send out the debt collectors. This the ATO hopes will stop people permanently missing payments.