In business – STP are you ready?

Urgent action required for ATO
Business Owners Australia wide – a must read:

Did you know about STPR (Single Touch Payroll Reporting)? This is the biggest change in ATO compliance for business owners in Australia. Yes, that is right, the biggest new requirement by the ATO since the introduction of GST.

A good definition of STP – Single Touch Payroll and STPR – Single Touch Payroll Reporting is that it is a real-time digital reporting system through to the ATO through the internet. Leading software providers have shown the way to update their systems to provide this service.

Any time you would like to shortcut the reading time, you can call or email us for a complimentary assistance.

There are some very important dates you should know, and these vary for different sized businesses.
A summary here is a useful place to start:

20+ Employees
This size business was required to comply with STPR from 1/7/2018.
Large employers with 20 or more employees should now be reporting, or have applied to the ATO for a later start date. This means all the relevant
employment and superannuation information is reported to the ATO each time you pay your employees. This could be weekly or fortnightly, what fits your normal payroll cycle.

19- Employees
If your business has 19 or less employees you should be reporting through an STP reporting system from 1/7/2019.
The ATO allowed this date to be extended to 1/10/2019 – this date was granted as a three month transition period only, to allow for your business to prepare for the new reporting requirements.
You need to apply to the ATO if you require additional time. This date is fast approaching, so action is required now.

Micro Business Owners (with fewer than five employees)
You will be able to use alternative reporting options. Check in with us if you are in this category. Remember the drill:

Small Business employing family members
You will not need to report on family members only through STP during the 2019/2020 financial year.
This category is a business where the payees are directly related to the entity from which they received payments – family members of a family business, directors or shareholders of a company or beneficiaries of a trust.
If you are in this category, you can continue to report to the ATO in the existing process that you are currently using. This means you will still need to provide the payees with a payment summary and lodge a Payment Summary Annual Report to the ATO in the required time frame.
You may need to discuss further with your accountant or check with the ATO directly, if you are unsure.
But note if you do have any employees that are NOT considered family members, then this category does not apply to you. All the other employees must be reported through STP.