Single Touch Payroll changes
Single Touch Payroll changes from 1 July 2021
The ATO has recently published a number of fact sheets in relation to Single Touch Payroll (STP) changes which will take effect on 1 July 2021.
Small employers will commence to report for closely held payees (AKA. related parties), and the quarterly exemption for micro employers will generally cease.
Small businesses with closely held payees
From 1 July 2021, you will need to report your closely held payees (such as family members or yourself, that work in your business) through STP. You can choose to report these payees each pay day, monthly or quarterly.
A ‘closely held payee’ is an individual who is directly related to the entity from which they receive wages or director fees, for example:
- family members of a family business;
- directors or shareholders of a company; and
- beneficiaries of a trust.
Micro businesses reporting quarterly
A micro employer is currently entitled to report through their registered tax or BAS agent on a quarterly basis until 30 June 2021. From 1 July 2021, the quarterly reporting concession will only be considered for micro employers experiencing exceptional circumstances.
Finalisation declarations will need to be submitted by 14 July each year. The ATO has advised it is not currently accepting applications for this concession. The ATO website will be updated when applications can be made.
Tax Banter have put together a comprehensive overview of the Single Touch Payroll changes on their website:
https://taxbanter.com.au/banter-blog/single-touch-payroll-changes-from-1-july-2021/
If you require assistance with your STP obligations or want to know more, please contact Holmans today;
Holmans Noosa: (07) 5430 7600 or email info@holmans.com.au
Holmans Maroochydore: (07) 5451 6888 or email infohm@holmans.com.au
