Finalise STP Data for 2021
We remind employers reporting through Single Touch Payroll (‘STP’) – which should be all employers, unless an exemption of deferral applies – that they will need to finalise payroll information for the 2021 income year by making a declaration. The finalisation declaration is completed once the STP information is confirmed as correct. The due date for the finalisation declarations is 14 July 2021.
Employers that finalise through STP are not required to provide payment summaries to employees or lodge a payment summary annual report to the ATO. Instead, employees will be able to access their payroll information (for the preparation of their 2021 tax return), through a registered tax agent or via myGov.
We will be in touch with our payroll clients in relation to completing finalisation declarations. If you require further assistance please contact us.
Changes to STP Reporting Concessions from 1 July 2021
Small employers (19 or fewer employees) are currently exempt from reporting ‘closely held’ payees through Single Touch Payroll (STP). A quarterly reporting option also applies to micro employers (4 or fewer employees). We remind employers that both these concessions for small and micro employers will end on 30 June 2021. Please contact us if you require any assistance following the change to the STP concessions.
ATO’S Taxable Payments Reporting System Update
The ATO has confirmed that more than 60,000 businesses have not yet complied with lodgment requirements under the taxable payments reporting system (‘TPRS’) for 2019/20.
The TPRS is a black economy measure designed to assist the ATO to identify contractors who don’t report or under-report their income.
The ATO estimates that around 280,000 businesses need to lodge a Taxable payments annual report (‘TPAR’) for the 2020 financial year.
Importantly, 2020 was the first year that businesses that pay contractors to provide road freight, information technology, security, investigation, or surveillance services may need to lodge a TPAR with the ATO (in addition to those businesses providing building and construction, cleaning, or courier services).
Businesses who have not yet lodged need to lodge as soon as possible to avoid penalties.
ATO Assistant Commissioner Peter Holt added that some businesses may not realise they need to lodge a TPAR, but may be required to, depending on the percentage of payments received for deliveries or courier services.
“Many restaurants, cafés, grocery stores, pharmacies and retailers have started paying contractors to deliver their goods to their customers. These businesses may not have previously needed to lodge a TPAR. However, if the total payments received for these deliveries or courier services are 10% or more of the total annual business income, you’ll need to lodge,” Mr Holt said.