Do you own a small or medium sized business? Our latest article might be for you!
In this blog we look at Single Touch Payroll Reporting, and some previous exemptions that are changing on 1 July 2021.
What Is STP Reporting?
With Single Touch Payroll, businesses report employee’s payroll information, including salaries and wages, superannuation and pay as you go withholding, to the ATO.
That information is sent via STP-enabled software each time an employee is paid (we explain more about this below).
Changes to Single Touch Payroll Exemptions
Over the last couple of years, some concessions were provided depending on business, employer types or industry, however the ATO says most of these will cease on 1 July 2021.
Some of those with current concessions will be required to report each pay day through the Single Touch Payroll initiative by this date or penalties may apply.
Some exemptions that are changing include:
- Micro employer in the agriculture, fishing or forestry industry: Previously those in these industries who required more time to move to real-time STP reporting were able to report quarterly. Those people will need to report per pay event from 1 July 2021.
- Closely Held Payees: Small employers with 19 or fewer payees didn’t need to report amounts paid to closely held payees through STP. However, amounts paid to closely held payees will need to be reported through STP from 1 July 2021.
- Not-for-profit clubs and associations: From 1 July 2021 not-for-profit clubs or associations, (e.g. local sporting clubs or school parent associations who are micro employers), will also need to report per pay event.
Learn more about exemptions and applying for an exemption here.
How To Report Single Touch Payroll
There are four (4) ways to send your STP data to the ATO. They are:
- Ask for a third party’s help: A qualified third-party, such as a payroll service provider or registered Tax or BAS agent, can report it for you. Contact Dream Financing here if you are interested in engaging the help of our services.
- Use existing payroll or accounting software: If your existing software is STP-enabled you can report from it. Xero is capable of lodging Single Touch Payroll.
- Select payroll software that’s STP-enabled: Don’t have STP-enabled software or any payroll software at all? You’ll have to find a suitable option. Here at Dream Financing we are Xero Certified Advisor and can help you make the switch without stress.
- Low-cost or no-cost solutions: Employers with between 1 and 4 employers are eligible for this option.
Learn more about the above alternatives here.
If you’ve got questions about single touch payroll reporting, call the Dream Financing team today on 0422 682 762.
Dream Financing is the mortgage broker of choice for Brisbane North, including Eatons Hill, Albany Creek, Warner, Draper, Samford and surrounding areas. We’ll help you find the best loan products no matter what your personal situation is.
We offer expert advice on a huge range of services including home loans, investment property loans, cashflow finance for self-employed, commercial property loans, car loans for self-employed and equipment loans for self-employed.