March 19, 2021

Changes in Single Touch Payroll for Small Employers Around the Corner

The STP exemption for small employers with closely held payees will cease on 30 June 2021. From 1 July 2021 small employers with closely held payees will need to report payroll information to the ATO (online) using the standard business reporting (SBR) format. A closely held payee is an individual directly related to the entity from which they receive payments. For example: family members of a family business. directors or shareholders of a company. beneficiaries of a trust.

The information may be reported in any of the following ways:

  • Report actual payments on or before the date of payment – whenever you make a payment to a closely held payee, report the information on or before each pay event.
  • Report actual payments quarterly – report your actual payments to closely held payees quarterly. Each quarter, when your activity statement is due, report all payments made in that quarter.
  • Report a reasonable estimate quarterly – report amounts equal to or greater than a percentage of gross payments and tax withheld from the latest year, across each quarter.

The type of information that is reported to the ATO includes wages, PAYG withholding and superannuation liability. Superannuation funds will also be reporting to the ATO so they can tell whether employees have been paid their super entitlements.

Employers will no longer be required to provide employees with a Payment Summary or lodge a Payment Summary Annual Report at year end where they report and finalise through STP.

Business’ using the major software suppliers (XERO, MYOB, QuickBooks) already have access to STP reporting capability, it just needs to be enabled within the software.

If you aren’t using the above software you just need to consider how to report your payroll information to the ATO. We recommend the Xero product for STP and costing is around $10 per month for up to 4 employees. MYOB and Quickbooks also have STP products.

If you do need assistance in setting up STP in any way, Jasmine Falls of our office will be able to give you a hand. Please give her a call at the office on 9387 5637.


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