From 1 July 2021, small employers will no longer receive an exemption from Single Touch Payroll [STP] reporting obligations for their closely held payees such as family members of a family business, directors or shareholders of a company or beneficiaries of a trust.
Small employers will have three STP reporting options available to them for closely held payees:
- Report on or before each pay event
- Report actual payments quarterly – when activity statement for that quarter is due, or
- Report a reasonable estimate quarterly – using a percentage of gross payments and tax from the latest year across each quarter
It is important to understand the reporting obligations employers will face come 1 July 2021. Further information on each option and how these may impact your businesses with closely held payees will follow in a more detailed announcement in the coming weeks.
In the meantime, to find out more you can read more from the ATO and register for their free webinar here.
As always, if there is anything we can help with please call us on 1300BDEPOT or reach out at firstname.lastname@example.org.