Single Touch Payroll (STP) is a compulsory manner that almost businesses have to use for reporting payment information to the Australian Tax Office. Not everyone has a clear understanding of STP, particularly abnormal entities as seasonal and intermittent employers. In the article, we mention those who generally have either no employees or between one and four employees for most of the year and then have an increase of employees for less than three months of a financial year (no need to be consecutive). These companies will be able to find some key points on adopting STP as following.
Conditions for quarterly STP reporting
You typically employ either no staff or between one and four staff, then
have fewer 20 seasonal or short-term employees for a three-month period or less
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 deferral.
You or your agent apply for this concession by following detail instruction of the ATO
You lodge the STP reports through an STP-enabled solution by yourself or an agent, instead of lodging through ATO portals
Needed data and due date of the quarterly report
The report needs to include your employees’ year-to-date amounts up to and including the last payday of the quarter, total gross wages, and the total amount of pay as you go withholding for the quarter. These data must match the W1 and W2 labels on your activity statement.
The expiry time for sending the STP pay event is at the same time as the lodging activity statement.
Something changes from traditional reporting
Your employees rather than getting payment summaries from you, now they can have equivalent data called ‘Employment income statement’ online through myGov of the ATO. After you complete the finalization declaration, a notification will be sent to your staff to fulfill their tax returns.
You need to report your employees’ superannuation liability or ordinary time each payday, depending on the information in the payslip. Super funds will report to the ATO when you pay the super for your staff.
We hope you can find the above information useful for your business. Don’t hesitate to contact us if you need any consultants. Find us on the hotline (08) 9345 0499 or our official email firstname.lastname@example.org