The ATO have now confirmed that as of 1 July 2021 it will become mandatory for all employers to be registered for Single Touch Payroll (STP) after it was put on hold for 12 months due to the pandemic. This will now include businesses that only employ closely held employees such as relatives.
STP requires employers to report their payroll information directly to the ATO in real time. This payroll information includes, Salaries & Wages, Pay as you go (PAYG) Withholding and Superannuation. In order to report this information, employers need to have access to STP-enabled software and need to start reporting by 1 July.
Employers already STP compliant will also need to ensure that they are reporting their pay runs on the payment day. The ATO will issue penalties for employers who fail to lodge their STP reports promptly.
If you do not have access to this software or are unsure if this applies to your business, please contact our office for further assistance.