22 Jun STP General Concession for Small Employers expires 30 June 2021
Single Touch Payroll is an ATO initiative to capture detailed payroll data in almost real time. It became mandatory in the 2019/20 financial year for MOST employers.
It was introduced to assist the ATO monitor whether the correct amount of tax was being withheld from employees, and whether the right amount of superannuation is being calculated and paid.
It requires all employers to run a computerized payroll report to the ATO, each time a payroll is run.
There has been a general concession for the smallest of employers – those with less than 5 employees – or for employers who only employed family, directors or other associates of the employer. This allowed these micro or family businesses to report quarterly through their BAS agent or accountant, rather than when a payroll is run.
The general concession expires on 30th June, 2021 – which means from that date, ALL employers need to report using Single Touch Payroll. For most, this will mean a computerized payroll system and reporting after each pay run.
JCA Accountants & Business Advisors can help with low cost payroll programs, and with setting up and running your own payroll. We can even run your payroll for you.
This is a key ATO initiative, and will be the subject of intense scrutiny in the new tax year.
Please be pro-active, and contact us to assist you to become compliant, rather than scramble in reaction to contact from the ATO.
Please also contact us if you feel there are exceptional circumstances that apply to your business – there may be options that take those circumstances into account.