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HOW TO TRANSITION YOUR BUSINESS TO SINGLE TOUCH PAYROLL

Posted May 6, 2019

Salon owners beware, Single Touch Payroll is coming whether you’re ready or not!

Single Touch Payroll is the biggest shake-up for business owners single the introduction of compulsory superannuation payments in 1992. It regulates the payment of superannuation and ensures that all businesses are correctly paying their staff and their superannuation – but it also involves huge changes for salon owners in order to stay compliant.

For some businesses, the only change you’ll need to make is reporting more frequently instead of once at the end of a financial year. If you currently use payroll or accounting software that offers Single Touch Payroll, you can start reporting any time.

 

HOW DO I GET SET UP WITH SINGLE TOUCH PAYROLL?

Depending on your existing payroll system, you might be able to transition over to Single Touch Payroll already. Some providers, like Quickbooks and Xero, already allow you to move over to Single Touch Payroll and they have guides to using their platforms to do so on their website.

If you aren’t using a payroll system and are managing your payments manually, or if your payroll system doesn’t currently support Single Touch Payroll, then you personally will have to opt-in to the system. We recommend that salon owners do the opt-in themselves, rather than using their bookkeeper, as you are likely to be the one filing and processing the pay run.

You have to lodge a number of details and forms with the ATO and actually call the ATO to finalise your connection. You need to provide the ATO with proof of ownership including your Australian Business Number. If you’re serious about continuing to manage your pay runs yourself,it’ss worth setting some time aside to get everything set up correctly well before June 30 so you have time to get it right.

 

WHAT INFORMATION IS SHARED WITH SINGLE TOUCH PAYROLL?

Payment, tax and superannuation information for all staff within your business is reported to the ATO each time you pay your team. This needs to be sent to the ATO using a very specific form so that only the relevant information is lodged. This must be done correctly to avoid any penalties and might take a bit of time to get used to if you’re not following any kind of payroll process currently in your salon.

 

WHAT HAPPENS IF I GET A REPORT WRONG?

We get it, sometimes you stuff something up. Unfortunately, with Single Touch Payroll not only do you have to fix the issue with your team, you need to completely refile your report. You can either revert the pay run, make your required changes, post and file the report with the ATO; or complete and unscheduled pay run to rectify the mistake (with an additional attached report); or fix the mistake in time for your next pay run. In the case of Single Touch Payroll, it’s far better to get it right the first time, so make sure you check all your figures and report carefully before submitting.

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