Single Touch Payroll – options for late adopters
Many SMEs have struggled to adapt to the Single Touch Payroll and the ATO has released guidance on how to transition to reporting via STP.
Small employers were required to transition to reporting through STP by 30 September 2019. As many small businesses struggle to implement the new reporting, the ATO has released its guidance on how to deal with them to get STP up and running.
What are your options?
Clients who have not commenced using STP have three broad options:
- Obtain STP enabled software (or start using existing software if it has STP capability);
- Apply for reporting concessions; or
- Ask the ATO for a deferral.
Are there any concessions available?
Yes, there are reporting concessions available for 'micro employers' (with 1 to 4 employees) and quarterly reporting through a registered tax agent, although taxpayers in the agriculture, fishing and forestry industry and non-profit clubs and associations may be able to apply to report quarterly without using a registered tax agent.
Concessions are also available for seasonal employers. Note that small employers (19 or fewer employees) with only closely-held payees (such as family businesses for example) are exempt from complying with STP until the 2021 income year. Deferrals may also be available for taxpayers who need more time to start using STP.
Speak to your accountant about STP
If your business has not commenced using STP yet are eligible for one of the reporting concessions speak to us about how to engage with the ATO. Please contact us on 02 9957 4033.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.