If you are an employer, you should currently be reporting your employees’ payroll information through Single Touch Payroll (STP), unless you only have closely held payees or a deferral or exemption covers you.  However, as of 1 July 2021, there will be changes to STP reporting for small employers with closely held payees and quarterly reporting for micro employers.

As an employer of closely held payees (such as family members or a family business, directors or shareholders of a company), from 1 July 2021, you will need to report those payees through Single Touch Payroll software like any other employee. You will be allowed to choose when to report each payday, per month or by quarter.

From 1 July 2021, specific eligibility requirements will need to be met for micro employers to access the STP quarterly reporting concessions. These concessions will now include the requirement for exceptional circumstances to exist. In this case, micro employers refer to employers who have anywhere from 0 to between 1 and 4 employees for most of the year and then increase their workforce for less than three months of a financial year.

These concessions can be applied for through the ATO’s online deferral tool from 1 July 2021. Be advised, however, that employers who have not started reporting through Single Touch Payroll without a deferral or exemption could be liable for severe consequences.

For further information please talk to your Harris Black team member.