The ATO recently reminded small employers with 19 or less employees that they needed to move to Single Touch Payroll (STP) by 30 September 2019.
STP became mandatory for small employers from 1 July this year. The ATO provided a three-month transition period to employers that needed more time to get ready until 30 September.
Points to note include:
- for businesses with five or more employees, their reporting solution will generally be in the form of payroll software
- micro employers (one to four employees) can adopt low-cost, simple solutions. Search “STP low cost solutions” on the ATO website for a list of providers and their products.
- micro employers may be eligible to report quarterly through their BAS Agent or Tax Agent until 30 June 2021.
- smaller employers (less than 20 employees) of closely-held payees (e.g. family members of a family-owned business, directors or shareholders of a company, or trustees or beneficiaries of a trust) may be exempt from reporting these payees until 2020-2021. Other payees must however be reported.
- employers may be totally exempt from STP reporting if they have no or low digital capability, no or unreliable internet, irregular employment patterns, or “other extenuating circumstances” (not defined).