Technology, Tax and Going Electronic – Part 2

June 2019 | Accounting & Tax

Businesses – the ATO is closing the gaps

The ATO is now closing the gaps, and are honing-in on non-compliance by businesses.

Single Touch Payroll is the latest change that is going to hit all businesses. In our view, this is the most significant change to business since the introduction of the GST.

The ATO is now making all businesses, regardless of size, register for Single Touch Payroll from 1 July 2019, which means that your payroll data is going to 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 that you are required to pay.

Each quarter now, for superannuation, employers are to use a Clearing House. 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 your accounting software up successfully, in particular for superannuation for staff. We’ve seen instances where the settings have not been established, and superannuation has been overpaid. For more information, please click here for 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 systems for expenses to make sure that you have copies of all of your invoices and other justification for claims with the ATO.

AAG has been working to assist clients with streamlining their business and processes to assist with compliance with the ATO regulations, superannuation, and workplace relations, and at the same time, deliver them 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, and not just at the end of the year for the annual tax returns and financials.

Important information and disclaimer

This publication has been prepared by AustAsia Group, including AustAsia Accounting Services Pty Ltd (Registered Tax Agent No 7587 3005).

Any advice in this publication is general only and has not been tailored to your circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance or other decision. Please seek personal advice before acting on this information.

Information in this publication is accurate as at the date of writing, 20 June 2019. Some of the information may have been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.

Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of AustAsia Group, nor their employees or directors give any warranty of accuracy, nor accept any responsibility, for any errors or omissions in this document.

Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.

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