A new Government initiative aimed at streamlining business payroll reporting obligations came into effect July 2018, with an extension for smaller employers until 1st July 2019. Single Touch Payroll (STP) is a new compulsory reporting system whereby employers report employee payments (such as salary and wages, allowances, superannuation) and PAYG withholding to the ATO via an STP solution after each pay cycle. Following this financial year 2018/19 you won’t have to supply PAYG Payment Summaries to employees as the ATO will already prefill this information.
As a business with Closely Held Employees (i.e. the payee is directly related to the entity from which they receive payments: family members of a family owned business) you will have an additional 12 months to start reporting via STP. However, you can commence any time prior to 30th June 2020.
For more information go to: https://www.ato.gov.au/Business/Single-Touch-Payroll/
ORM has already transitioned several farm businesses to assist with the implementation of Single Touch Payroll. Pick up the phone if you need support through the STP implementation process.