Recently, the Tax Commissioner of Australia, Chris Jordan, issued a statement explicitly addressing Small Businesses (defined as having fewer than 20 employees) and their connection to Single Touch Payroll (STP). This announcement holds significance for accountants in Sydney who assist such businesses with their financial matters.
In the statement, he outlined several things, including:
- Parliament has passed legislation to extend Single Touch Payroll (STP) reporting to include all small employers (those with fewer than 20 employees) from 1 July 2019.
- The ATO is working with software providers to develop low and no-cost reporting solutions, including simple payroll solutions, portals and mobile apps. ATO will publish a list of providers on their website at www.ato.gov.au/stpsolutions.
- ATO will offer micro employers (1 to 4 employees) help to transition to STP and several alternative options – such as allowing those who rely on a registered tax or BAS agent to report quarterly for the first two years, rather than each time payroll is run (it seems that we will be able to report it through the Tax portal).
- The ATO will grant deferrals to any small employer who requests additional time to start STP reporting.
- There will be no penalties for mistakes, missed or late reports for the first year.
The Commissioner wants to reassure small businesses that the ATO approach to STP will be flexible, reasonable and pragmatic.
You can read the complete statement here – https://www.ato.gov.au/Media-centre/Articles/Transition-to-Single-Touch-Payroll-for-small-employers/
Please contact us if you have any queries concerning STP.
Kreston Stanley Williamson Team
*Correct as of February 2019
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.
