Substantial Employers are those who have 20 or more employees and from 1 July 2018 will be required to report to ATO as they pay.
All employers will need to count the number of employees on their payroll on 1 April 2018 to find out if they are a ‘substantial employer’. They need to do a headcount, not a count of full time equivalent (FTE).
If you have 20 or more employees on 1 April, you will be a 'substantial employer' and will need to report through Single Touch Payroll from 1 July 2018.
When you pay your employees through your Single Touch Payroll-enabled solution you will be reporting payments such as their salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding and super information to the ATO at the same time.
Once you are a substantial employer you will be required to continue reporting through Single Touch Payroll even if your employee numbers drop below 20.
From 1 July 2019 Single Touch Payroll will be mandatory for all Employers.
You will need a payroll solution which is Single Touch Payroll-enabled. Contact your payroll software or your accountant to find out when your payroll solution will be ready for Single Touch Payroll Reporting.