The ATO has clarified the reporting requirements for employers for Single Touch Payroll (STP) from July 2021 and also provided a temporary exemption for small employers in respect of closely held payees
Unless employers have an exemption, closely held employees or there is another deferral, all employers should be reporting from STP.
From 1 July 2021:
- Employers must report their closely held payees through STP and can choose to report monthly or quarterly.
- The eligibility requirements for quarterly reporting concessions for micro employers will change. A quarterly reporting concession will only be available to micro employers who report through a registered tax professional, meet certain eligibility requirements and have special circumstances.
The above arrangements replace the concessions currently available to:
- Micro Employers
- Seasonal and Intermittent Employers
- The Agriculture, Fishing and Forestry Industry
- Not-for-profit Clubs and Associations
The Australian Taxation office has advised that small employers (19 or less employees) will be except from reporting closely held payees through STP until 30 June 2021 – Employers will not need to apply for the exemption.
Should you require any further information or if you have any queries please contact your Armada advisor.