Single Touch Payroll Options & Exemptions
Single Touch Payroll (STP) mandatory reporting commences for substantial employers on 1 July, 2018. But, this single factor is not enough for you to determine what to do next. You have options regarding when you commence and how you manage your businesses approach to STP. Work with ADP to assist you in navigating your options and determining the best STP flight plan for your business.
Your businesses must have an STP Solution
In order to comply with the ATO deadline of 1 July, 2018, if you have 20 or more employees in your business you must either:
- Confirm your current payroll provider will be STP compliant or have a deferral from the ATO on your behalf,
- Switch to a software provide who will be STP compliant,
- Consider applying for a deferral from the ATO yourself,
- Confirm you meet the ATOs exemption classifications.
ADP’s payroll solutions will be STP compliant from 1 July, 2018. Get on board with our compliant solution today.
Penalty free zone for 12 months
Having a non-compliant STP solution is not an option if you have 20 or more employees, but the ATO has granted an amnesty on imposing penalties during the first 12 months if you are late in reporting on time. Penalties may be imposed for late reporting if too frequent. Penalties under the amnesty only relate to STP and do not cover other non-compliance areas, such as your Superannuation commitments.
ATO’s STP Travel advice – do you need to get on board?
Exemptions from STP reporting do exist but they are limited to businesses that are:
- located in a rural area and are impacted by unreliable internet connection
- classified as a substantial employer (20 or more employees) for only a short period of the financial year e.g. you experience an increase in employees only during harvesting season.
If you are one of the few businesses that would qualify for an exemption, the ATO will advise you how long this will cover your delay in starting STP. Note that all your normal obligations will still apply, such as reporting and paying your PAYG and your end of financial year process of issuing payment summaries to employees and reporting to the ATO.
Deferrals. Can your STP flight be delayed?
There may be valid reasons why you cannot start STP reporting from 1 July, 2018. For this reason the ATO has implemented a deferral request process to covers situations where you:
- have entered administration or liquidation,
- have been impacted by a natural disaster, or
- are affected by a circumstance outside your control.
You’ll need to address this in plenty of time before 1 July 2018, to be sure the ATO will grant you a deferral. Better still, see ADP to get yourself STP covered.