A recent ATO announcement hasn’t received the mainstream business media coverage it deserves (surprises, surprise). As can be seen on the ATO Website employers with 20 or more employees will have to submit a “real time” payment summary at time of payment (regular pay run) from July 1 2018, with all employers coming online from 1st July 2019. So what does this mean for you ?
- Manual payroll systems are officially dead
- Utilising electronic payroll systems that do not produce the necessary uploads will need to be phased out by 30th June 2018
- ATO will have “live” data with which to monitor PAYG Withholding debts and SGC exposure
- The need for accurate and timely processing of payroll
So what practical steps can you take now to soften the blow ?
- Update your software to Xero (if you haven’t converted from the dark side already) – we can help you with that
- Ensure all of your PAYG Withholding and SGC are up to date by 30th June 2018 – hey we know most of you are on top of this but sometimes sh@t happens
- Review your current payroll workflow and process to see whether it can simplified – if not it may be time to speak to your employees about shifting your week end and payment dates to buy your wonderful payroll teams a day or so of breathing space. (By the way, we can also assist with a review of the payroll process within your business with the goal of making it run like clockwork)