For companies who have 20 or more employees, reporting your payroll and superannuation information to the Australian Taxation Office through Single Touch Payroll (STP) is now mandatory. However, if you are still not ready for STP reporting by 1st of July 2018, you can apply for a deferral from the ATO. Here’s how.
Getting a deferral
The Australian Taxation Office may grant you a deferred start date if your company is not ready for Single Touch Payroll reporting. Depending on your situation, either you or your payroll software provider can request for the deferral.
Deferral request by a payroll software provider
Some payroll software providers may not have their products ready in time for STP. Their customers may also need more time to prepare and implement the STP system. Whatever the case may be, the software provider will need to lodge a deferral request by submitting a Deferral Evidence Package (DEP) to the ATO.
The DEP is a collection of documents that should include:
- the software provider’s payroll products, including descriptions about the functions and capabilities of the product, their updated delivery model and target market
- a product roadmap detailing when their payroll products will be STP compliant as well as any products they are planning to retire
- an estimated timeline or a transition plan covering an estimate of when their clients will start Single Touch Payroll reporting
- a client-readiness strategy and roadmap that details the plans of the payroll software provider to assist their clients in adopting STP reporting
Check with your payroll software provider if they have already applied with the ATO. They should tell you if a deferral was granted as well as the deferred date.
Deferral request from an employer
You can apply for an employer deferral if you need more time to implement Single Touch Payroll reporting. Note that there’s no need to do this if your payroll software provider already applied for a deferral.
The Australian Taxation Office will consider your company’s deferral if you meet the following criteria:
- your company has entered administration or liquidation
- your company has been impacted by a natural disaster
- you are unable to get ready by your payroll software provider’s deferred start date
- your company is changing to another STP-enabled system
- you’ve been using a customised payroll solution and you need more time to configure and test your updated product
- you have complex payment arrangements
- there are other circumstances that are out of your control
You can go here to print out the employer deferral request form.
If you need any assistance with your Single Touch Payroll obligations, contact a Chan & Naylor accountant near you, and we’ll be more than happy to help.
Aside from Single Touch Payroll systems, have a look at our other accounting and advisory services that we do to help you achieve greater success.
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Chan & Naylor Group has nationwide offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and South West Sydney, Parramatta, Pymble, North Sydney, and Sydney in New South Wales that can assist you with your Single Touch Payroll compliance as well as any property tax or business tax enquiry that you may have. Contact us today.
Source: Australian Taxation Office