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Do you need to report STP for your employees from the 1st of July 2021?
Keep reading and we'll show you how we can help you do this, AND give you $1500 for your efforts!?
Changes to STP Reporting Concessions from 1 July 2021
Small employers (19 or fewer employees) are currently exempt from reporting ‘closely held’ payees through Single Touch Payroll (‘STP’). A quarterly STP reporting option also applies to micro employers (four or fewer employees). Both of these concessions for small and micro employers will end on 30 June 2021.
Closely held payees (small employers)
From 1 July 2021, small employers must report payments made to closely held payees through STP using any of the options below. Other employees must continue to be reported by each pay day.
A ‘closely held payee’ is an individual who is directly related to the entity from which they receive payments. For example, this could include family members of a family business, directors or shareholders of a company and beneficiaries of a trust.
Payments to such payees can be reported via STP (from 1 July 2021) using any of the following options:
Report actual payments on or before the date of payment.
Report actual payments quarterly on or before the due date for the employer’s quarterly activity statements.
Report a reasonable estimate quarterly on or before the due date for the employer’s quarterly activity statements. Penalties may apply for those that under-estimate amounts reported for closely held payees.
Small employers with only closely held payees have up until the due date of the payee’s tax return to make a finalisation declaration. Employers will need to speak with these payees about when their individual income tax return is due.
Micro employers
From 1 July 2021, the quarterly reporting concession will only be considered for eligible micro employers experiencing ‘exceptional circumstances’
Common examples of when the ATO would generally consider it to be fair and reasonable to grant a deferral due to exceptional or unforeseen circumstances include natural disasters, other disasters or events, serious illness or death.
Further, ‘exceptional circumstances’ for access to the STP quarterly reporting concession from 1 July 2021 may include where a micro employer has:
seasonal or intermittent workers; or
no or unreliable internet connection.
The ATO says it will consider any other unique circumstances on a case-by-case basis.
It should be noted that registered agents must apply for this concession and lodge STP reports, quarterly, on behalf of their eligible micro employer clients.
The STP reports are due the same day as the employer’s quarterly activity statements. If an employer prefers to report monthly, the STP reports must be lodged on or before the 21st day of the following month and finalisation declarations will need to be submitted by 14 July each year.
Not-for-profit clubs and associations
Not-for-profit clubs or associations – for example, school parent associations or local sporting clubs who are micro employers (making payments to employees or volunteers) can choose to report quarterly until 30 June 2021.
From 1 July 2021 you will need to report per pay event. If you have exceptional circumstances and can’t report each pay day, you may be eligible for the quarterly reporting concession for micro employers
To be eligible for a quarterly reporting concession, you must be a micro employer with 1–4 employees at the time of application. Work out how to count your employees. You must also meet the eligibility criteria.
How can we help?
Need to start lodging STP but don't know where to start?
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Actually, we can do more than just help.
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