Blog Layout

Changes to STP reporting from 1 July 2021

Dawson & Partners • Apr 05, 2021

There are changes to Single Touch Payroll (STP) reporting for small employers with closely held payees and to quarterly reporting for micro employers from 1 July 2021.

A closely held (related) payee: is someone who is directly related to the business, company or trust that pays them, such as:

  • family members of a family business
  • directors or shareholders of a company
  • beneficiaries of a trust.

From 1 July 2021, employers must report any closely held payees through STP. You can choose to report these payees each pay day, monthly or quarterly.

Ways to report your closely held payees

From 1 July 2021, you can report payments to closely held payees through STP in any of the following ways:

  • Report actual payments on or before the date of payment – whenever you make a payment to a closely held payee, report the information on or before each pay event.
  • Report actual payments quarterly – report your actual payments to closely held payees quarterly. Each quarter, when your activity statement is due, report all payments made in that quarter.
  • Report a reasonable estimate quarterly – report amounts equal to or greater than a percentage of gross payments and tax withheld from the previous year, across each quarter.

A micro employer : is someone with one to four employees.

From 1 July 2021, STP quarterly reporting concessions for micro employers will only be available to those who meet certain eligibility requirements. These now include the need for exceptional circumstances to exist.

To be eligible for this quarterly reporting concession, you must meet all of the following:

  • be a micro employer on the day you apply (based on employee headcount)
  • lodge your activity statements electronically through a registered tax or BAS agent
  • have a non-computerised payroll. This could include running your payroll manually and keeping records on a spreadsheet or paper
  • all amounts owing to the ATO are either not yet due or subject to a payment plan
  • all lodgment obligations are either not yet due or subject to a deferral
  • for applications for a period commencing after 1 July 2021, you must also meet the guidelines for exceptional circumstances.

Exceptional circumstances

The following circumstances may be considered exceptional when considering an application for the quarterly reporting concession from 1 July 2021:

  • Seasonal or intermittent workers – for micro employers who generally have either no or between one and four employees for most of the year and then increase their workforce for less than three months of a financial year.
  • No or unreliable internet connection – ATO would consider the following:
    • an inability to connect to the internet
    • a connection that consistently requires multiple attempts
    • consistent dropouts or disconnections
    • exceedingly slow data transfer.

Note: employers with no or intermittent internet connection may also apply for an:

  • exemption via your registered tax or BAS agent
  • operational deferral – allowing up to an additional three days to lodge.

Employers can apply for this concession through the online deferral tool from 1 July 2021.

Employers who haven't started reporting through STP and don't have a deferral or exemption need to start reporting now.

If you would like any further information or assistance in regards to Single Touch Payroll, please feel free to contact us on  1300 885 761 .
07 Dec, 2022
Christmas 2022
22 Nov, 2022
You may have heard about the new rules which require directors of Australian companies to obtain a Director Identification Number (director ID). It is a unique 15-digit identifier that directors apply for once and keep forever. The following provides some useful further information. As a director of my SMSF’s corporate trustee do I need a director ID? The new requirement to obtain a director ID applies to all directors of corporate trustees of an SMSF. The only exclusion applies to a director who has resigned from all director roles during the period 04 April 2021 to 30 November 2022 and has no intention to ever be appointed as a director or alternate director of an Australian or foreign company. How long do I have before I need to get my director ID? Individuals that were a director of any company prior to 1 November 2021 have until 30 November 2022 to get a director ID. This transitional period also applies to newly appointed directors of corporate trustees of an SMSF, provided they were an existing director, of a company, before 1 November 2021. Otherwise, first time directors are now required to have a director ID before they are appointed as director of any company. What is the fastest way to apply for a director ID? With 30 November 2022 fast approaching, we strongly encourage all directors to apply for their director ID now. The fastest way to apply for your director ID is online at abrs.gov.au/directorID . To access the director ID application online, you will use your myGovID to log in to ABRS (Australian Business Registry Services) online. This director ID demonstration video will show you step by step, how to apply for your director ID online. What to do if you do not have a MyGovID already? A myGovID is different to your myGov account. Your myGov account allows you to link to and access online services provided by the ATO, Centrelink, Medicare and more, while myGovID is an app that enables you to prove who you are and to log in to a range of government online services, including myGov. If you do not already have a myGovID you will need to set this up before you can apply for your director ID online. Refer to mygovid.gov.au/setup for more information on setting up a myGovID. You will need to choose your identity strength, noting that ‘standard’ identity strength is the minimum strength required for a director ID. What if I can’t set up myGovID online? Where you are experiencing difficulties setting up your myGovID, the ATO encourages you to contact them on 13 62 50. To speed up the phone application, please have your TFN ready as well as the information listed below, required to verify your identity. If you cannot apply online or over the phone, the ATO will provide you with a paper form to complete. This is the least preferred option and will require you to provide certified copies of your documents to verify your identity. Can we help you get your director ID? You must apply for your director ID yourself, so that the ATO can verify your identity. To verify your identity against your ATO records, once you have logged into ABRS online using myGovID, you'll need your tax file number, your residential address held by the ATO, and information from two of the following documents: bank account details (where your tax refunds or payments are made and received) an ATO notice of assessment a dividend statement a Centrelink payment summary a PAYG payment summary (this is different to your income statement or your PAYG instalment activity statement). How can we help? If you have any questions or would like further information about director IDs, please feel free to give us a call on 1300 885 761, so we can discuss your requirements in more detail. Although we are unable to apply for a director ID on your behalf, we would be more than happy to guide you through the process and where possible, source documents to help you verify your identity with the ATO.  For other information, resources, and timely updates relevant to your SMSF, please refer to the SMSF Association’s trustee education platform, SMSF Connect.
By Dawson & Partners 23 Oct, 2022
All employers are required to pay and report super guarantee payments electronically to ensure they meet SuperStream requirements. With the introduction of SuperStream it is now easier for the ATO to monitor your payments to ensure they have all been paid on time. Super guarantee payments must be made by employers to their employees' complying funds by quarterly due dates, which are 28 days after the end of each quarter. The due dates for each quarter are as follows: 
More Posts
Share by: