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Complying with Single Touch Payroll reporting requirements will be a necessity for all Australian Businesses. There are a few key dates associated with the roll-out of Single Touch Payroll across the nation. Below, we outline these key dates and explain how they will affect your business.

April 1st, 2018

All businesses within Australian will need to provide an employee headcount to the Australian Taxation Office on the 1st of April, 2018. This information is crucial because the employee headcount number determines the date that your business will need to be operating Single Touch Payroll. You only need to count employees on this day, as listed below – you don’t need to know the number of employees over a full year.

How to Count Employees

For Single Touch Payroll, the Australian Taxation Office requires a headcount – which is different to a count of your FTE (full-time equivalent). This means you must include all the following employees in your count:

  • Casual employees who are listed on your payroll on April 1st and worked for your business at any stage in March
  • Part-time employees
  • Full-time employees
  • Employees on your payroll who are based in a different country
  • Any employees who are on your payroll but are on leave, or absent
  • Seasonal employees who are/were on your payroll for a short period to assist in peak periods

In your headcount, you do NOT count the following employees:

  • Employees that stopped working for your business before April 1st
  • Casual employees that did not work for your business during March
  • Independent contractors
  • Employees who were provided by a third-party labour hire company
  • Directors of the business
  • Officeholders
  • Religious practitioners

If your business belongs to a company group, the total number of applicable staff employed by each member company of the entire group will need to be included.

If your headcount of the above applicable staff is a number over 20, you are deemed a ‘substantial employer’ and will have to follow the single Touch Payroll steps for ‘substantial employers’. It is important to note that you will be required to report as a ‘substantial employer’ going forward, even if your headcount drops under 20 later.

July 1st, 2018

If your business has over 20 staff and is deemed a ‘substantial employer’, you will require Single Touch Payroll to be in operation from July 1st, 2018.

July 1st, 2019

If your business has less than 20 staff, you will need to have Single Touch Payroll in place from July 1st, 2019. You are more than welcome to implement Single Touch Payroll prior to this date.

12 months

There will be a 12-month period of penalty leniency to allow your business to find its feet within these new reporting requirements. It is possible, however, to receive a written notice during this period stating that failure to meet the standards will result in a fine. However, after this date, full penalties will apply for any business not operating compliantly with Single Touch Payroll requirements, with additional penalties applied for the detection of award non-compliance within the reports.

If you’re unsure about your business’ requirements for Single Touch Payroll roll-out, please get in contact with Roubler today.