Doyle Bookkeeping

Upcoming ATO reporting Obligations

Upcoming ATO obligations
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Closely held payees concession ENDS 1st July 2021

Small employers with 19 or fewer payees are currently exempt from reporting amounts paid to closely held payees through Single Touch Payroll (STP) until 30 June 2021.

I.e. An individual directly related to the entity from which they receive payments such as:

  • Directors or shareholders of a company
  • Family members in a family business
  • Beneficiaries of a trust

From 1 July 2021, you will be required to report amounts paid to closely held payees through STP.

Other arrangements apply to businesses with 20 or more payees.

For more information, visit https://www.ato.gov.au/business/single-touch-payroll/concessional-reporting/closely-held-payees/#Eligibilityfortheconcession3

Single Touch Payroll Phase 2 effective 1st January 2022

What is Single Touch Payroll Phase 2 and how will it affect you.

In the 2019–20 Budget, the Government announced that Single Touch Payroll (STP) would be expanded to include additional information. This expansion of STP (also known as STP Phase 2) will reduce the reporting burden for employers who need to report information about their employees to multiple government agencies. It also supports the administration of the social security system. In the 2019–20 Budget, the Government announced that Single Touch Payroll (STP) would be expanded to include additional information. The mandatory start date for STP Phase 2 reporting will be 1 January 2022.  STP as we know it today reports high level (YTD) data – Gross, Tax, Allowances, Lump Sums + FBT.

ATO

STP Phase 2 In Detail

Single Touch Payroll (Phase 2) will include reporting on:

  • Salary Sacrifice
  • Bonuses and Commissions
  • Overtime
  • Directors Fees
  • Paid leave (including leave type and OTE Status)
  • Deductions (Type, Amount, Var reason)
  • Reportable FBT will now require the reporting of RFBA exemption status and amount

Benefits for the Employee

The initial mandatory compliance date for STP Phase 2 was the 1st July 2021, however this date was deferred on a few occasions.

The new mandatory date of compliance is the 1st January 2022 and this date is unlikely to change.

There will be a deferral program for employers who do not believe they will be ready for that specific date.

  • All your information will be kept in one place on My Gov.
  • There will be less paperwork and a more complete digital record. Your interactions with Services Australia will be streamlined.
  • It will be easier to understand how you’re getting paid and how it’s defined by income type
  • The breakdown will make it easier to identify payment types for tax and reporting purposes.
  • All the data is centrally stored, and your tax agent can categorize payments made to you as per ATO standards. Saving time and money, making tax time easier and understandable.

Benefits for the Employer

  • Alignment of your payroll components into specific groups to simplify the payment system to employees.
  • No more manual reporting of child support payments. This data is now captured in the STP report.
  • No more lodging of employee TFN Declarations. This is now captured in the STP report.
  • Phase 2 will remove the Employment Separation Certificate requirement (because the data will be transmitted through STP).

WHEN WILL SINGLE TOUCH PAYROLL PHASE 2 COME INTO EFFECT?

The initial mandatory compliance date for STP Phase 2 was the 1st July 2021, however this date was deferred on a few occasions.

The new mandatory date of compliance is the 1st January 2022 and this date is unlikely to change.

There will be a deferral program for employers who do not believe they will be ready for that specific date.

START PREPARING NOW!

We highly suggest you undertake a full assessment on your Payroll and perform a systems review to ensure that everything is in order prior to the roll out of STP phase 2.

Find out more: https://www.ato.gov.au/Business/Single-Touch-Payroll/Expanding-Single-Touch-Payroll-(Phase-2)/

CLOSELY HELD PAYEES TO REPORT STP

EFFECTIVE 1ST JULY 2021

SINGLE TOUCH PAYROLL PHASE 2

EFFECTIVE 1ST JANUARY 2022