Small employers were required to transition to reporting through STP by 30 September 2019. Hundreds of thousands of small businesses are yet to register and are on the ATO’s radar.
If any clients who have not yet commenced using STP the ATO has provided some guidance for these taxpayers encouraging them to contact the ATO as soon as possible to assist with the transition process.
Clients who have not commenced using STP have three broad options:
- Obtain STP enabled software (or start using existing software if it has STP capability);
- Apply for reporting concessions; or
- Ask the ATO for a deferral.
The reporting concessions are available for ‘micro employers’ (with 1 to 4 employees) and allow quarterly reporting through a registered tax agent, although taxpayers in the agriculture, fishing and forestry industry and non-profit clubs and associations may be able to apply to report quarterly without using a registered tax agent. Concessions are also available for seasonal employers.
Note that small employers (19 or fewer employees) with only closely-held payees (such as family businesses for example) are exempt from complying with STP until the 2021 income year
Deferrals may also be available for taxpayers who need more time to start using STP.
Please contact us and book in to discuss your options, if you have not commenced using STP yet and are eligible for one of the reporting concessions. We need to request a deferral as soon as practicable.