Businesses – the ATO is closing the gaps
The ATO is now closing the gaps and honing in on businesses’ non-compliance.
Single-touch payroll is the latest change that will affect all businesses. In our view, it is the most significant change to business since the introduction of the GST.
The ATO now requires all businesses, regardless of size, to register for Single Touch Payroll from 1 July 2019. This means that your payroll data will be transmitted to the ATO each pay period. Then, they will put the information for each staff member via their payslips onto their MyGov account, including the superannuation you are required to pay.
Each quarter now, employers are to use a clearing house for superannuation. The Clearing House will then transmit that data to the ATO. Using technology to match the payroll data with the Clearing House data, the ATO will quickly find which employers are not paying their employees’ super on time and then can trigger an audit on not just super compliance but also other taxes, including but not limited to GST, Fringe Benefits Tax, and a range of other issues.
It is, therefore, essential that business clients of all sizes:
- Are using compliant payroll and accounting software for the ATO;
- Set up your accounting software successfully, particularly for staff superannuation. We’ve seen instances where the settings have not been established, and superannuation has been overpaid. For more information, please click here to find the article.
- Set up your systems for logbooks and recording personal use of motor vehicles to ensure compliance with Fringe Benefits Tax and
- Review your other expense systems to ensure you have copies of all your invoices and other justifications for claims with the ATO.
AAG has been working to assist clients with streamlining their business and processes to ensure compliance with the ATO regulations, superannuation, and workplace relations and to deliver these efficiently.
We’ve recently assisted several clients who have their in-house bookkeeper or Financial Manager to review the settings of their payroll or accounting system or to recommend an upgrade.
We also provide full bookkeeping, payroll, and financial management assistance to clients throughout the year, not just at the end of the year, for annual tax returns and financials.
For part three, click here.
