Employers with 5 – 19 Employees (Small Employers)
Start reporting early – If you have payroll software which offers STP, you can update your product and start reporting at any time. Discuss this with your software provider to find out what you need to do.
Start reporting from any time from 1 July – 30 September 2019 – Please visit the Australian Taxation Office (ATO) website to view the available STP solutions – click here
Apply for more time to get ready – If you won’t be ready to start reporting by 30 September 2019, you can apply to the ATO for a deferred start date – click here
Ask the ATO for an exemption if you meet the criteria – If you live in an area with intermittent or no internet connection, you can contact the ATO for an exemption.
Employers with 1-4 Employees (micro Employers)
If you have four or less employees, and you don’t currently use payroll software, there will be other ways to report STP information.
A number of no-cost and low-cost STP solutions for micro employers can be found here – click here
Employers with closely held payees
A closely held payee means the employee (payee) is directly related to the entity from which they receive payments, for example:
- family members of a family-owned business;
- directors or shareholders of a company
Employers may not always pay closely held payees a regular salary or wage, and instead, may draw on income from the business throughout the year. As STP information is reported each time payroll is run, employers would not be able to report their closely held payees this way.
If you are an employer with closely held payees, there are flexible reporting options available to you.
You will be exempt from reporting closely held payees during the 2019-20 financial year. However, all other employees (arms-length employees) must be reported through STP from 1 July 2019, unless a deferred start date if one has been granted.
You will have the option to report closely held payees quarterly from 1 July 2020 – after the exemption period. This report will be due at the same time as your activity statement.
Should you require any assistance or further information please contact our office on 9256 2777.