The way employers report tax and super information to the Australian Taxation Office (ATO) has changed. This reporting change is called Single Touch Payroll and this week we look at how it affects any PAYG employee and what we need to do to get ready for it.
What is Single Touch Payroll?
It’s the reporting name given by the ATO, and it means that every time we pay you, we provide your year-to-date tax and super information directly to the ATO. This is called ‘real-time reporting’.
Does it affect me?
Whilst it doesn’t change the way you’re paid, there are still some changes you need to be aware of. The law has changed and we no longer provide you with a payment summary (Group Certificate) at the end of the financial year. Instead, your payment summary information will be called an Income Statement and accessed in the myGov system.
What are the benefits?
If you sign up to myGov, you can login at any time and see your year-to-date Wages tax and Super values. It also means that come tax time, you no longer need to wait for a Payment Summary to be issued. Your tax agent via their portals with the ATO will have your income statement at the touch of a button thanks to Single Touch Payroll.
The ATO will also be able to see whether your employers are calculating super, paying super into your nominated fund and withholding and paying your tax to the ATO. Therefore, the ATO will be asking questions of any employer who doesn’t appear to be doing the right thing.
Does Speller use it?
Yes. All businesses with more than 20 employees are required to use the system for the 2018-2019 financial year. Subject to a new law, it’s expected that all employers will be using this for the 2019-2020 financial year.
What do I need to do?
myGov can be set up and accessed at my.gov.au and you can download the 2 Factor Authentication (2FA) app for free – it’s called myGov Access. It’s easy to set up and you can sign in with your mobile number or email address. Once you have access to your account, you can link ATO online services by providing your tax file number. For your Income statement? Head to My Profile in your account, select My Employment and access your Income Statement.
Keep in mind, it may take a few days for your myGov information to be updated after your employer pays you. That means the information you see in myGov may not always match what you see on your payslip. Also, while the amount of Super we pay you is reported every relevant pay run, we’re only required to pay your Super to the fund once per quarter.
It’s not compulsory to set up a myGov account, but it is worth checking out and handy to have all your information in one place. Remember, Speller will not be providing PAYG Statements (group certificates) this financial year, so if you do want to download an Income Statement, you will need to set this up.
If you have any further questions about this, feel welcome to call the Speller Team.