ARE YOU AFFECTED BY THE SINGLE TOUCH PAYROLL CHANGES FROM 1 JULY 2021?
1st July means a lot of things for Payroll one of the new ones this year is the ending of some (STP) Single Touch Payroll Exemptions STP Changes that have been available since 1 July 2019.
If you are a Micro Employer (employee 4 or fewer staff) you may have been utilising the Quarterly STP lodgement Exemption. This meant that your BAS Agent only had to lodge the STP report once a quarter by your BAS due date. This exemption is now only going to be available in very limited circumstances.
It will only be granted where:
- You meet all of the following criteria
- You are still a micro employer
- Your BAS’s are lodged via a BAS or Tax Agent
- You don’t have a computerised Payroll system
- All lodgement and payment obligations are current
- You meet the following exemptional circumstances
- There is no or a very poor internet connection
- Majority of employees are seasonal or intermittent workers.
If you are currently utilising this exemption, you should have been advised by the Australian Tax Office that the exemption is ending. If we are currently lodging your quarterly STP reports we will let you know what this change means.
There has also been an exemption on reporting “Wages” paid to closely held employees via STP since 1 July 2019. This exemption is now expiring at 30 June 2021.
Any payments/drawings that are reported as Wages, Salary or Directors Fees and some bonus’ to closely held payees (ie directly related to the entity paying them, company directors, family members, shareholders) need to be added to a payroll run and reported via STP Compliant Software. Thankfully, this does not include amounts that are ultimately treated as Trust Distributions if you are trading as a trust.
Your business has 3 options for reporting via STP:
- Report amounts actually paid to the related payees on or before each pay day (just as current employees are via STP)
- Report amounts actually paid to the related payees quarterly, by the due date of the employers’ activity statement (if lodge monthly this is due by the due date of the final month for the quarter)
- Report a reasonable estimate, quarterly, by the by the due date of the employers’ activity statement (if lodge monthly this is due by the due date of the final month for the quarter)
IMPORTANT PAYG will need to be Withheld on the actual payments or estimates and this will need to be paid to the ATO. Superannuation will also be due for wage payments and need to be paid by the due date. This will have an impact on Cashflow, make sure you have accounted for this change.
If you need help getting on STP compliant software or registering with the ATO for PAYG Withholding, please reach out to us via either email (email@example.com) or by phone: 07 5596 4604.