Mandatory Single Touch Payroll (STP) reporting for all Australian business owners commenced from July 1 of this year.
While STP reporting for businesses with 20 or more employees has been in effect for over a year, from July 1st businesses that employ 19 or less employees also need to report via STP.
While the way employees are paid won’t change, business owners must now send an online report to the ATO every time they pay their employees. They have until 30 September 2019 to lodge the first report.
Closely Held Payees Exemption – There is an exemption for small employers (19 or less employees) with closely held payees. A closely held payee is someone directly related to the entity from which they receive payments, for example family members of a family business, directors or shareholders of a company, or beneficiaries of a trust. Reporting for closely held payees is not required through STP for the 19-20 financial year, however will be required from 1 July 2020. All arm’s length employees of the entity must still be reported on the statutory due date.
Click here to read our previous detailed article on single touch payroll, or visit the Australian Tax Office website. If you need any questions answered, do not hesitate to contact us on (02) 9908 9888.