Small employers – with 19 or less employees – need to move to Single Touch Payroll (STP) by 30 September 2019.
STP is a new way of reporting tax and superannuation information to the Australian Taxation Office (ATO), which involves reporting employees’ payroll information, such as salaries and wages, pay as you go (PAYG) withholding and super information to to ATO each time employees are paid.
STP became mandatory for small employers from 1 July this year. The ATO provided a three-month transition period to employers that needed more time to get ready until 30 September.
During this transition period, the ATO has said that the number of small employers reporting through STP has more than tripled, going from around 100,000 to 350,000 as of 16 September.
Employers have a number of options to transition to STP. They can start reporting now, get a deferral, or work with their registered tax or BAS agent to report quarterly (if eligible).
There are also concessions available for employers who don’t have access to a reliable internet connection, as well as those that employ family members or other ‘closely held’ payees, one to four employees, and intermittent or seasonal workers.
To help small employers better understand their options, the ATO has developed a range of factsheets and other resources, available on the ATO website.