Single Touch Payroll Changes from 1 July 2021
Lakshan Rajakumar | Ekta Dham • June 24, 2021
The ATO has recently published fact sheets in relation to Single Touch Payroll (STP) changes which will take effect on 1 July 2021. Small employers will commence to report STP for closely held payees on a weekly, fortnightly, monthly or quarterly. Quarterly reporting is only allowed if you've met certain criteria.
| Current STP Rules (Prior to 1 July 2021) | Changes from 1 July 2021 |
| Who is required to Lodged?
a) Employers with 20 or more employees from 1 July 2018 b) Employers with 19 or fewer employees from 1 July 2019 (unless an exemption is applied to them) What information is required to be lodged? a) Salaries and wages b) PAYG c) Super liability information Refer source for tables showing what is reportable. |
Who is required to lodge?
a) Micro Employers (with 4 or fewer employees) - eligible for quarterly reporting concession b) Employers with closely held payees must report through STP Eligibility for quarterly reporting concession - must meet ALL of the following a) Be a micro employer on the day you apply (work out how to count your employees ) b) Lodge your activity statements electronically through a registered tax or BAS agent c) Have a non-computerised payroll. This could include running your payroll manually and keeping records on a spreadsheet or paper d) All amounts owing to ATO are either not yet due or subject to a payment plan e) All lodgement obligations are either not yet due or subject to a deferral f) For applications for a period commencing after 1 July 2021, you must also meet the guidelines for exceptional circumstances . What is the exceptional circumstances? a) 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 b) No or unreliable internet connection – we would consider the following i) an inability to connect to the internet ii) a connection that consistently requires multiple attempts iii) consistent dropouts or disconnections iv) exceedingly slow data transfer What information is required to be lodged? a) Salaries and wages b) PAYG c) Super liability information d) Occupation e) Itemise gross wage into allowances f) Bonuses g) Overtime h) Leaves i) and more |
F
requently asked questions
| 1. How to lodge STP, does my current accounting software allow us to do it?
STP can be only lodged with STP-enabled software. Most of the accounting software has this function, however this option is only available if your current subscription has payroll function. Our team will be in touch with you in early July 2021 to review your subscription and advise you if any changes are required for your subscriptions. |
| 2. When do we lodge the STP?
You are required to report a pay event to the ATO on or before the pay day. The pay day is either the payment date stipulated in the electronic transaction to your financial institution or, if you did not specify a date for payment, the date you intend to make the payment into your employee's bank account. |
|
3. How do we fix an error in the payslips?
Once STP is filed, the software won't allow you to delete that payslip. You are required to process another payslip as an amendment to fix the error. As per ATO, corrected STP needs to be lodged within 14 days of the need for a correction being identified or in the next regular pay event where the affected employee has continuity of employment. |
| 4. Is there penalty for non-compliance or late lodgement?
Yes !!!! |
What did we do till now?
As part of modernising the Business Registers Program, Australian Business Registry Services have introduced Director ID or Director Identification Number (DIN). This is a mandatory requirement for all directors. It is a 15 digit identifier given to a director and applies forever, even though you may no longer be a director for a company, change your name, or move interstate or overseas.
In preparation for tax time 2020, undoubtedly you would be excited about claiming all your home office expenses for the months you were required to work from home. To assist you with your preparations, we have put together a simple guide, per below;
Tax Tips!
It is important that you maintain a diary of 4 weeks for both pre Covid and during Covid periods (separately) to be able to justify your claim. The diary could be in form of an excel file log showing hours worked with a short description of work done over a continued period of 4 weeks. You can use roster records (showing work from home) as an alternative, if provided to you by work.
Remember, you need to pass the 3 tests to be able to claim an expense as work related:
The incurred test - You need to have spent money and not be reimbursed.
The nexus test - The amount spent should be directly related to your work and not be ancillary.
The substantiation test - You need to maintain records to substantiate your expenses.
For further information on work related expenses please click the below helpful links from the ATO:
Working from home
Support for individuals and employees working from home
Additionally, please feel free to download your copy of our extensive checklists here in preparation for your appointment.
