Changes to STP reporting from 1 July

|by Kamil Qureshi|Taxation and Compliance

Most employers should now be reporting through Single Touch Payroll (STP) each pay day, unless they only have closely held payees or are covered by a deferral or exemption.

Also, a quarterly STP reporting option applies to micro employers (1 to 4 employees), micro seasonal and intermittent employers, and micro employers in the agricultural, fishing and forestry industries. These concessions will end on 30 June 2021.

From 1 July 2021, small employers must report payments made to closely held payees through STP using any of the options set out below. Information about all other employees (known as ‘arm's length employees’) must continue to be reported on or before each pay day.

A ‘closely held payee’ is an individual who is directly related to the entity from which they receive payments, for example:

  • family members of a family business;
  • directors or shareholders of a company; and
  • beneficiaries of a trust.

Payments to closely held payees can be reported via STP (from 1 July 2021) using any of the following three options:

  1. Report actual payments on or before the date of payment.
  2. Report actual payments to closely held payees quarterly, on or before the due date for the employer’s quarterly activity statements.
  3. Report a reasonable estimate quarterly, on or before the due date for the employer’s quarterly activity statements. Broadly, this option requires employers to report amounts equal to or greater than a percentage of gross payments and tax withheld from the latest year, across each quarter.

STP quarterly reporting concessions for micro employers will only be available to micro employers who meet certain eligibility requirements. These now include the need for exceptional circumstances to exist. Employers who haven't started reporting through STP and don't have a deferral or exemption need to start reporting now.

At Cordner Advisory we can assist your business to apply for this concession. Please do not hesitate to contact one of your trusted advisors at Cordner Advisory should you need further assistance.

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