In this article, we’ll discuss the latest Single Touch Payroll updates from the ATO as the STP go-live date approaches.
Starting July 1 this year, small businesses with 19 or fewer employees will need to start reporting via Single Touch Payroll (STP).
STP obligates business owners to disclose their staff members’ salaries and wages, Pay As You Go (PAYG) withholding, and super details to the Australian Taxation Office (ATO) from their payroll service every instance owners pay their employees.
Listed below is a summary of several key announcements from the ATO for small business owners in Australia.
- The ATO will provide assistance to micro employers who have one to four employees to help them transition to STP. They will offer several alternative options including making it possible for owners who depend on a registered tax or BAS agent to report quarterly for the first two years, instead of every time payroll is run.
- Small business owners may begin reporting any time from 1 July to 30 September 2019. Deferrals may be granted by the ATO on an application basis.
- For the first year, small business owners will not get penalised by the ATO for any mistakes, missed, or late reports.
- Exemptions will be provided by the ATO for owners going through hardship, or for businesses that are in locations with intermittent or no internet connection.
- Small companies who do not have an Australian Business Number (ABN) but instead possess a Withholding Payer Number (WPN) are excluded from reporting under STP for the 2018/19 and 2019/20 financial years.
- Insolvency specialists are excluded from compulsory reporting via STP for the 2018/19 financial year in respect of the entities they manage.
- STP statements lodged by business owners will be shown to social security agencies from 1 July 2020.
In addition, the ATO website has published several useful PDF and FAQ documents for small business owners below.
- Single Touch Payroll for small employers
- Single Touch Payroll for closely held employees
- Single Touch Payroll Get Ready Checklist
- Single Touch Payroll for employees
- No-cost and low-cost Single Touch Payroll solutions
Need STP assistance for your business? Contact a Chan & Naylor business tax accountant here.
Have a look at our other accounting and advisory services that we do to help you and your business achieve greater financial success.
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The Chan & Naylor Group has national offices in North Sydney, South West Sydney, Sydney, Pymble and Parramatta in New South Wales, Melbourne, Moonee Ponds and Hawthorn in Victoria, Brisbane and Capalaba in Queensland, and East Perth in Western Australia that can assist you with Single Touch Payroll. Contact us today.