Currently in Australia all employers should be reporting to the ATO using a Single Touch Payroll (STP) System either on or before pay day, unless they only have closely held payees, or they are covered by an exemption or deferral.
As of 1 July 2021, there are changes to STP reporting for small employers with closely held payees and micro employers who are reporting quarterly. Do these changes affect your small business bookkeeping?
Employers With Closely Held Payees
Commencing 1 July 2021 employers who have closely held employees will need to report their closely held employee wages through STP. You can choose to report these payees each pay day, monthly or quarterly.
Closely held employees are those who are related to the entity from which they are paid:
- Family members of a family business.
- Trust beneficiaries.
- Directors or shareholders of a company.
Micro Employer Reporting Quarterly.
From 1 July 2021, STP quarterly reporting will be mandatory for Micro Employers (1-4 employees). Micro employers may be eligible for an exemption or deferral if certain criteria are met. This requirement now includes the need for exceptional circumstances to exist.
Micro employers can apply for this concession through the ATO.
If you’re still unsure on how these changes will affect your small business bookkeeping processes and obligation, give us a call. We can guide you through it.