Legislation was introduced in September 2016 which will have another change in payroll requirements for those employers who employ 20 or more individuals (not FTE’s). The aim of the legislation is reducing administration requirements and automated reporting to the ATO. The requirements apply from 1 July 2018 and the test of whether you are affected or not will take place on 1 April 2018. It is anticipated that these requirements will be rolled out to smaller businesses once the large business reporting is bedded down.
The real affect of this requirements is the ATO will have access to real time data from large employers through their payroll systems. Employers will need to make sure their payroll systems are up to date to ensure these requirements will be met post 1 July 2018. This may also mean an increase in questions and ultimately audit activity by the ATO in relation to PAYG withholding and Super Guarantee obligations.
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