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STP reporting exemption extended for WPN holders

STP reporting exemption extended for WPN holders

The ATO has extended The Single Touch Payroll (‘STP’) reporting exemption to organisations that have a withholding payer number (‘WPN’).

As a result, certain entities that don’t have an ABN (but have the WPN instead) will not be required to report under STP in the financial years 2021-22 and 2022-23.

This extends the exemption that has been in place for eligible organisations since the start of the fiscal year 2018-19.

This went into effect on 1st July, 2021, and will automatically be terminated on 1st October,  2023.

FAQ

What is STP Reporting?

As you process your payroll, STP sends tax and super information from your STP-enabled payroll or accounting software to the ATO.

You will be able to run your payroll and pay your staff as usual as well as provide them with a payslip.

There’s no need to alter your pay schedule. You have the option of paying your employees weekly, biweekly, or monthly.

When is STP required?

STP became mandatory on 1st July, 2018 for employers with 20 or more employees and on 1st July, 2019 for employers with 19 or fewer employees. Depending on the type of business, industry, or employer, the ATO has granted numerous concessions.

How to correct an STP Report

Corrections to your employees’ year-to-date amounts can also be made in your next pay event or through an update event. To learn how to correct a report visit Correcting a pay report

STP report due date

Employing businesses have the option of reporting STP on or before payday.

The normal requirements for reporting STP apply if you wish to report amounts paid to your closely held employees on or before payday. However, you’ll have more time to make a finalisation declaration for your closely held payees.

Single Touch Payroll for Closely Held Employee

A closely held payee is someone who is related to the company from whom they receive income. These can include family members in a family business, for example, who could be directors or shareholders of a firm, or beneficiaries of a trust.

On or before each payday, you must continue to report information on all of your other employees (known as arm’s length employees) via STP (the statutory due date).

From 1st July, 2021, amounts paid to closely held payees can be reported through STP in one of the following ways:

  • Report actual payments on or before payday – report the information on or before each pay event whenever you make a payment to a closely held payee.
  • Report actual payments quarterly – every three months, report your actual payments to closely held payees. When your activity statement is due each quarter, report all payments made during that period.
  • Make a reasonable estimate of the amounts you paid to closely held payees during the quarter and report that amount through STP.

You must still:

  • include any pay as you go (PAYG) withholding amounts on your activity statement and pay the amount you owe to us by the due date, just as you would for your arm’s length employees.
  • Contribute to your closely held payees’ super guarantee (SG) before the quarterly payment date.

Finalisation of STP for Closely Held Payees

Your finalisation statement for closely held payees is required by 30th September each year for closely held payees. You still need to finalise STP by the 14th July for your arm’s length employees.

Single Touch Payroll Exemptions (STP exemptions)

There are reporting exemptions under Single Touch Payroll (STP) for a specific fiscal year or for specific types of companies, employees, and payments.

If you are exempt from STP reporting, you must continue to meet your existing PAYG withholding obligations, which include reporting and paying your PAYG withholding and super guarantee liabilities, providing payment summaries to your employees, and submitting an annual payment summary report to the ATO.

Find out if you are exempt through this link.

If you need assistance with Single Touch Payroll, please contact us for more information.

 

This page contains information that is of a general nature. It does not take into account your specific requirements or circumstances. Before making any financial decisions, you should consider your individual financial situation, objectives, and requirements, and seek financial advice.


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