IT’S TIME TO GET READY FOR SINGLE TOUCH PAYROLL

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Posted April 15, 2019

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

HABA reported to our members that changes to Single Touch Payroll started rolling out from the 1^st of July 2018, when all businesses with more than 20 employees were forced onto the system. From the 1^st July 2019, all small businesses will now be required to use the ATO system, meaning that employers will need to report payments such as salaries and wages, PAYG withholding and super information directly to the ATO. Those salon owners who do not comply with this change in legislation will be penalised – and as yet, we don’t know how heavy those penalties are going to be.

Now is the time to start preparing your salon for Single Touch Payroll to ensure you don’t get a fine simply for being a bit busy or a little unorganised. By tackling the ground work and getting ready for Single Touch Payroll in advance, you ensure that the transition for your business and for your team is smooth.

Here’s what you need to do to be prepared:

• If you use online payroll software, it might be able to handle Single Touch Payroll already, but you might need to call your software provider to be sure. Just make sure it produces ATO-compliant reports.
• If you use desktop payroll software, you’ll need to find a service that can upload your payroll reports, convert them into the ATO’s required format and submit them on your behalf. This could be an additional cost to you that makes the system no longer viable for your business.

• If you use spreadsheets or pen and paper, you’ll need to find a service to convert the data into a compliant digital report format and submit it on your behalf. You will want to choose this person carefully as if you don’t get it right you run the risk of getting a large fine for getting your reports submitted incorrectly.

HABA encourages ALL members to get an automated system ready NOW to process your payroll payments from July 1^st 2019 – the challenges you face doing it alone and the time it will take to get it right is simply not worth the cost savings you will make. However, not all options for salon owners for Single Touch Payroll have been created equally.