Payroll Payments – Why Businesses Need To Switch To Single Touch Payroll
The single touch payroll system has been around for several years in Australia. While all businesses in Australia should already have switched to single touch payroll, some may not have enrolled in the system at this time. If your business has not made the transition, then there are many reasons why you need to do so as soon as possible.
Single touch payroll is beneficial for the Australian Taxation Office to maintain up-to-date information on the state of the country’s economy. It is worth noting that making the switch does not have to be difficult for your business. However, if you need some motivation to finally make the necessary changes, let’s look at some of the reasons why businesses need to switch to single touch payroll.
It Is Easy To Do
Thanks to contemporary technology, making the switch and complying with single touch payroll is easy. Many businesses have held out on going through with the transition because they falsely believe that the process is too involved. However, with the right software or even the right app, you will be able to submit your single touch payroll information to the ATO with ease.
Under the single touch payroll system, you will also be freed up from having to file a number of reports and other paperwork that used to be necessary. This includes payment summary annual reports and employee payment summaries. If these items have caused you grief in the past, you can look forward to the new system.
You Will Avoid Fines
Businesses who fail to comply with single touch payroll by June 30th of 2020 will face potential financial penalties. If you are interested in maximising your profit as a small business owner, then you cannot afford to take on the penalties that could be imposed. Look for online accounting software to make the transition easy and avoid hefty fines.
You Will Be Helping Policymakers
One of the major reasons for the introduction of the single touch payroll system is to provide the ATO with up-to-date information on the state of employment and payroll in the country. With this information, the Australian government will have a better sense of the state of the current economy. This will allow policymakers to make better decisions and more effectively design policies to benefit all Australian citizens.
By enrolling in single touch payroll, you will be doing your part to create a more streamlined and digitally-based government that better serves its citizens.
You Will Be Complying With The Law
As described in the introduction, single touch payroll is now the new normal in Australia. Since legislation was passed that makes this system mandatory for all businesses in the country, it is imperative that you get your business on board with it as soon as possible.
While smaller businesses with 19 employees or fewer were originally asked to enrol in the system on a voluntary basis, the deadline has passed for these exemptions. Now, all businesses need to make the switch. If you have not done so already, it is important to do so soon.
Make It A Smooth Transition
If you have not already made the switch to single touch payroll, then the reasons outlined here have hopefully convinced you of the need to do so soon. The ATO has made it clear that no businesses will be penalised if they make the switch to single touch payroll in the 2019-2020 financial year, so be sure to get on the ball. Make sure your business is in compliance as soon as possible.
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