Single Touch Payroll functionality is coming to Microsoft Dynamics NAV with the Dialog Payroll Solutions add-on.
Single Touch Payroll is a reporting change for employers introduced by the Australian Tax Office that will start from 1 July 2018. With the introduction of these reporting requirements, mandated through new Australian government legislation, employers with more than twenty employees will need to report payments such as salaries, wages, pay-as-you-go withholding tax and superannuation information from their payroll solution each time they pay their employees.
Fenwick Software will be applying an upgrade to all our clients’ systems running the Payroll solution to provide this new Single Touch Payroll (STP) functionality. This is the next step for streamlining your payroll reporting to the ATO and provides benefits to both employers and employees.
Fenwick Software will be applying an upgrade to all our clients running the Payroll solution to provide this new Single Touch Payroll (STP) functionality.
How the STP Process will work:
The employer pays its employees, which sends the payslip and generates a bank file to be transferred, and the employee receives payment of their salary or wages. The employee’s tax and superannuation information will then be sent electronically to the ATO from the employer’s payroll software through Standard Business Reporting communication.
The ATO will receive the salary and wages information, tax withheld, and super liability amounts for all your employees. This enables the ATO to provide additional features and information through the myGov online portal.
This new process provides benefits to both employers and employees.
Benefits for employers:
- They can see their PAYG withholding liability through the online portal
- Pay their PAYG withholding liability more regularly
- Will not have to provide their employees with end-of-year payment summary
Benefits for employees:
- This information will be pre-filled into their tax returns and lodged through myTax
- They can use myGov to log into ATO online services and view their tax and superannuation information
- The end-of-year payment summary will be available online through myGov
If you are running Dynamics NAV Payroll Solutions, contact us to find out how you can start preparing for the Single Touch Payroll functionality.