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June 2019

MLCo • Jun 19, 2019

Single Touch Payroll Update for Employers < 19 Employees

Employers with 19 or fewer employees are required to start reporting through Single Touch Payroll ('STP') from 1 July 2019. The ATO will be working with employers to support them as they transition to STP, including allowing small employers to start reporting any time from 1 July to 30 September (and the ATO will also be "generous" in granting deferrals to small employers who need more time to start STP reporting). 

Exemptions and deferrals:

  • Employers with 1-4 employees may apply for small business deferrals and commence reporting from 1 July 2020.
  • Employers with less than 19 employees do not have to report employee payments through STP until 1 July 2020.

Changes to Employees and Payment Summaries

The ATO has also reminded employees that how they get their end of financial year information from their employer, showing their earnings for the year, depends on how their employer reports their income, tax and super information to the ATO.

Specifically:

  • Employers that are not yet reporting through STP will continue to provide employees with a payment summary by 14 July.
  • Employers that report through STP are no longer required to give employees a payment summary; instead this information will be provided in an 'income statement', available via the employee's myGov account by 31 July (i.e., when the employer marks it as 'Tax Ready').

Also in this month's update:

  • Cryptocurrency data matching program
  • Tax office to double audits of 'dodgy' rental deductions
  • Paying super to backpackers
  • New rules for immediate write-offs
READ MORE
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