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Single Touch Payroll (STP) Reporting for Small Business – are you ready?

Single Touch Payroll (STP) Reporting for Small Business – are you ready?

Current as of September 2019

The Tax Commissioner, Chris Jordan, recently released a statement regarding STP and how it relates to Small Business (defined as fewer than 20 employees).

In the statement he outlined a number of things including:

  • Parliament has now 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 a number of 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 is wanting to reassure small business that the ATO approach to STP will be flexible, reasonable and pragmatic.

You can read full 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 in relation to STP.

DISCLAIMER
This newsletter has been produced by Stanley & Williamson as a service to its clients and associates. The information contained in the newsletter is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this newsletter, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under Professional Standards legislation. 

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