By now you will hopefully have heard that legislation to extend Single Touch Payroll (STP) to employers with 19 or less employees from 1 July 2019 was passed by parliament yesterday although it is to still receive Royal Assent. Many thanks to all of you who have worked with us to get to this point.
We understand this is a big change for smaller employers, and we will be flexible in our approach. STP will be extended to employers with 19 or less employees gradually from 1 July 2019, and we will focus on providing help and support.
– STP is the largest change to an employer’s reporting obligations since the GST.
– Employers will report their employees’ pay and super information every time they run their payroll, with a quarterly reporting option for family businesses (closely held).
– Generous transition arrangements including deferrals and a quarterly reporting option for two years for micro employers reporting through an agent.
– Employers will be reporting their employees’ super liability amounts to the ATO for the first time.
– Employers no longer need to provide their employees with a payment summary for the information they report through STP.
– Employees will get the information they need to complete their tax return in myGov. Their year-to-date tax and super information will be updated in myGov each time they are paid.
Large employers (those with 20 or more employers) were mandated to start reporting from 1 July 2018. Around 60,000 employers are now reporting to the ATO through STP, and around 30% of those are employers with 19 or less employees who have opted to report through STP early.