From 1 July 2021 small employers with closely held payees and micro employers reporting quarterly will need to commence reporting through single touch payroll (STP). The STP report is due at the same time as the employer’s activity statement.
Employers with closely held payees can choose to report:
Actual payments each pay day;
Actual payments quarterly; or
A reasonable estimate quarterly.
The STP quarterly reporting concession for micro employers is only available to micro employers who meet certain eligibility requirements. For applications for a period commencing after 1 July 2021 the employer needs to meet the guidelines for exceptional circumstances.
Further, the mandatory start date for STP Phase 2 reporting (which involves providing more detailed information to the ATO) is 1 January 2022. Having said that, the ATO is providing some flexibility in terms of meeting this deadline.
The ATO has advised that:
If your Phase 2 reporting solution is ready for 1 January 2022, you should start Phase 2 reporting from 1 January 2022.
If you can start Phase 2 reporting before 1 March 2022, you will be considered to be reporting on time and you will not need to apply for more time.
If you need more time, you will be able to apply for a delayed transition from December 2021.
The ATO will not impose penalties for genuine mistakes for the first year of Phase 2 reporting, that is, until 31 December 2022.
Remember, registered tax agents and BAS agents can help you with your tax.