Single Touch Payroll reminder from the ATO for small businesses

The Australian Taxation Office (ATO) is urging small employers who have yet to make the switch to Single Touch Payroll (STP) to get in touch if they need help to transition, as small employers with 19 employees or fewer are now required to start reporting through STP.

ATO Assistant Commissioner Jason Lucchese emphasised that there was still time for businesses to start reporting if they haven’t already.

“If you are a small employer and not sure where to start, there are three possible pathways to take,” Mr Lucchese said, namely: 

>      start reporting now through an STP-enabled solution that is right for you

>      consider if you are eligible for a quarterly reporting concession, or

>      apply for a deferral if you need more time.

Mr Lucchese said it was ”really important” for small employers to contact the ATO if they have any concerns about their ability to transition to STP, or to speak with their registered tax or BAS agent if they have one.

No penalties will apply in the 2019-20 financial year for small employers who make a genuine attempt to transition or for missed or late reports, he added, saying the ATO wanted to make the transition to STP to be simple and manageable for all employers.

More than 540,000 employers across the country have successfully transitioned to STP, and a range of case studies have been prepared to demonstrate to the “relatively simple” process. An online quiz to assist small employers understand their options and determine what the next step should be which is available here. 

The ATO will continue to work with small employers to understand any barriers they may be facing and provide support to help them transition to STP reporting, with more information about STP available here.