Unless a deferral was in place, the requirement for employers with 20 or more employees to report through Single Touch Payroll (STP) began on the 1st July 2018. STP will apply to all employers, with a gradual start date depending on which category an employer falls under:
Employers with 5–19 employees (small employers)
These employers can start reporting anytime prior to 30th September 2019. If you won’t be ready, then you can apply to defer this start date provided you meet certain criteria.
Employers with 1–4 employees (micro employers)
Most accounting software providers offer STP compliant solutions, however you may need to upgrade the version that you are currently on. Alternatively there are a list of STP compliant no cost or low cost ($10 or less per month) solutions on the ATO website.
Employers with closely held payees (family members of a family-owned business, directors or shareholders of a company, trustees or beneficiaries of a trust)
There are flexible reporting options available for these employers, however you will need to be STP compliant from 1st July 2020. Where you have non closely held employees, then you will still need to start reporting their payroll information through STP before 30th September 2019.
Please contact our office if you have questions about which start date applies to your business, you require assistance selecting the STP compliant software that best suits your needs, or if you would like any assistance with getting setting up.
Contributed by Campbell Liggins.