STP Reporting deadline extension expiring 30 September
The ATO are reminding employers that the extension provided to prepare for the STP reporting regime, expires on 30th September 2019. ATO Assistant Commissioner Jason Lucchese said now is the time for small employers to be aware of their options and take the right steps to get ready.
“More than 400,000 employers are already reporting their employees’ tax and superannuation information digitally through STP, but we understand all employers operate in slightly different ways and every industry has unique challenges which can affect their payroll processes,” Mr Lucchese said. “Regardless of whether you’re ready to start reporting, or if you still need more time to get ready, there are options available to you.”
All employers irrespective of size need to understand their STP transition plan, and there are several options depending upon the employers’ circumstances.
- Start reporting now using STP compliant software – The ATO have provided a list of low and no cost software ready for use.
- Consider if a concessional reporting option is applicable for the employer – there are several concessional reporting options to assist employers in their transition, including:
- Quarterly reporting for micro-employers (<4 employees) who lodge their STP reporting obligations via a tax professional. This option is available until 30 June 2021. To take up on this option, the employer must have applied for the concession via their tax professional prior to 30 September 2019 and report via an STP compliant software on or before the BAS lodgement deadline. This option is only available for employers whose other payment and lodgement obligations are up to date.
- Micro-employers in the agriculture, fishing and forestry industry as well as not for profit organisations may report their STP obligations quarterly, as long as their other reporting and payment obligations are in order.
- Closely held payees are not required to be reported via the STP regime until after 1 July 2020. Any other ‘at arms-length’ employees of family businesses must be reported under the STP requirements from 1 July 2019.
- Seasonal and intermittent employers, who employ 5-19 employees for less than three months per year can apply for a concession for deferral.
- Employees of Multinational employers who are placed in different tax jurisdictions are known as inbound assignees. The processing of these payrolls can be complex and are often calculated outside of a payroll system and manually entered later for reporting and reconciliation purposes. These employers may be entitled to reporting concessions providing them with more time and flexibility in reporting for STP purposes.