What is Single Touch Payroll?
Single Touch Payroll is a government initiative to streamline business reporting obligations. It will become a mandatory reporting obligation for every employer in Australia.
Under Single Touch Payroll (STP), the following payroll information must be automatically sent to the ATO from the employer’s payroll system every time they process their payroll.
- salary or wages; and
- pay as you go (PAYG) withholding; and
- superannuation guarantee information
Please refer to these links for further information STP Readiness
What does Single Touch Payroll mean for Uniting Church organisations?
STP means that every Uniting Church organisation will be required to process their payroll through a payroll software system and ensure that their payroll software system is capable of supporting the Single Touch Payroll software.
Depending upon the number of persons on the payroll, this enhancement must be ready to be operated by Uniting Church organisations with:
- 20 or more persons effective from 1 July 2018; and
- less than 20 persons effective from 1 July 2019.
All Uniting Church organisations that remunerate 20 or more persons will therefore need to urgently review their current payroll systems and ascertain whether the systems are capable of being upgraded to accept the new software.
If the payroll system is:
- capable of upgrade, Uniting Church organisations should purchase and install the reporting-enabled software ensuring it is operable by 1 July 2018
- not capable of upgrade, Uniting Church organisations will need to consider alternatives to ensure they comply with their obligations.
What can we do if our current payroll system is not STP compliant?
One alternative for those organisations whose payroll systems are not capable of upgrade is for them to consider transitioning their payroll functions across to the Payroll Bureau Service (“PBS”) currently operated by Uniting Resources.
The PBS is available to all Uniting Church organisations in NSW and the ACT and it has the capacity to undertake the processing of payroll and ensure that Uniting Church organisations are meeting their obligations under prevailing legislation. This will obviously include compliance with the Single Touch Payroll reporting regime.
Please refer to the PBS Brochure for further information PBS Brochure
What are the next steps to be undertaken?
We ask that you please review your current payroll software to confirm that it will be capable of supporting STP reporting from 01 July 2018.
If yes, we will require an undertaking from your organisation representative that the software is compliant.
If not, we would urge you to seriously consider transitioning your payroll functions across to the Payroll Bureau Service (“PBS”) currently operated by Uniting Resources. Please contact the Synod Payroll Team on email@example.com or alternatively, please call (02) 8267 4288 for further information. The cut off for all expressions of interest is currently 30 April 2018.