Employers are reminded that Single Touch Payroll (STP) reporting now applies to all employers, with minimal exceptions. As noted in the last newsletter, the ATO provided small employers with an extension of the 1 July deadline. Employers who begin reporting any time between 1 July and 30 September will be considered to be reporting on time. If you are an employer, please ensure you begin reporting prior to the deadline.
Just in case you missed the update on STP in the last newsletter we have included it again for your information.
STP Employer Update
Employers with 19 or fewer employees are required to start reporting through Single Touch Payroll (STP) from 1 July 2019.
For employers under the STP the following changes will occur:
- You will be reporting salary and wages, PAYG withholding and super information to the ATO at the same time as you pay your employees.
- You are no longer required to give your employees a payment summary at the end of the financial year for the information you report through the STP system.
- Year-to-date and end-of-year tax and super information for your employees will be available in their ATO online account linked to my Gov.
The ATO will be working with employers to support them as they transition to STP, including allowing small employers to start reporting any time from 1 July to 30 September.
The ATO recognises there will be circumstances where more time is needed to implement STP or lodge reports. They will:
- Offer micro employers (1 to 4 employees) help to transition to STP. Where a micro employer relies on a registered tax or BAS agent they can report quarterly for the first two years.
- Grant deferrals to any small employer who requests additional time to start STP reporting.
- Apply no penalties for mistakes, missed or late reports for the first year; &
- Provide exemptions from STP reporting for employers experiencing hardship or in areas with intermittent or no internet connection.
Please also note that employers with 19 or less employees do not need to report ‘closely held payees’ in 2019/20 and can instead report them quarterly from 1 July 2020.
We remind our QBO users that QBO is ready and compliant for STP. Please note that assistance is available for clients who need someone to demonstrate the workings of STP and we are happy to visit you on-site to work through the various procedures.
Please also contact our office if you require any further assistance or information regarding your STP obligations.