The Single Touch Payroll system automatically reports payroll and superannuation information directly to the ATO every time employees are paid.

Businesses with more than 20 employees are required to transition to the system, with legislation currently before the Senate to extend this to companies of all sizes from 1 July 2019.

Micro employers (1-4 employees) will also have a number of alternate options that are not available to employers with 20 or more employees - such as initially allowing your registered tax or BAS agent to report quarterly, rather than each time you run your payroll.

It all sounds rather confusing, but we work through what this means for you as an accountant or bookkeeper and what it means for your clients.