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Single Touch Payroll Reporting?

Single Touch Payroll APPLIES TO ALL employers with 19 or less employees from 1 July 2019 or does it? 

Do I have to use Single Touch Payroll Reporting? Maybe not

Micro employers (re those who have between 1–4 employees) are exempt.

When working out how many employees you have, don't include the following in your headcount. Employees who have ceased working for you, closely held payees such family members of a family business, directors or shareholders of a company and beneficiaries of a trust.

The above means you could at any time have 6 or 7 employees and if past employees have left even 9 or 10 more - just make sure you forward in the definition.

If you are a micro employer you do not need to comply with STP until 30 June 2021.

To qualify for this concession the client must have registered for the exemption with an online form that is sent in by the tax agent. This was done for all our clients in June 2019 but note be careful with new clients.

Closely held payees (family members, directors or shareholders of a company, beneficiaries of a trust.)

Small employers (19 or less employees) with closely held payees are exempt for the 2019–20 financial year and therefore do not need to be reported. They will need to be reported through STP from 1 July 2020 and you will have the option to report their closely held payee information quarterly.

To qualify for this concession the client must be a closely held employer and to be classed as such they need to have advised the ATO by August 2019. This is done by a collective form which has to be lodged by the tax agent for all clients that are regarded as closely held. The ATO then confirm that list.

Note the way these rules work means if you register as a micro employer, which we've done for clients by definition you don't have to comply with STP until 1July 2021.

The applications are important. If you're not registered, you do not qualify for the exemptions and the reporting could trigger penalties particularly if you are lodging PAYG W forms late.

Latest News:

  • 30-06-2020
    Single Touch Payroll Reporting Do you Really Have to Use It!