There is so much information out there about Single Touch Payroll (STP) reporting and what it means for you and your business. Lucky you have Nexis to decipher it and help you out when it comes to STP.
So, what’s the latest in this space?
Earlier this month the ATO announced that they have granted a one-year STP exemption for closely held payees as it works on moving into a quarterly reporting framework from 1 July 2020.
To clarify what this means, it’s first useful to determine exactly what a closely held employee is. According to the ATO, a closely held employee is one who is a not arm’s length employee, directly related to the entity from which they receive payments, including family members of a family business, directors of a company and shareholders or beneficiaries.
If this applies to you, you may be eligible for the one-year exemption for the 2019-20 financial year, with STP reporting then to commence from 1 July 2020.
The ATO says it is putting the exemption in place as generally closely held employees don’t get paid the same way other employees do. They may take a wage only when there is a good cashflow in the business, or they could be using loan accounts.
Moving forward the ATO will move to quarterly reporting obligations and look to align its STP approach to the current closely held lodgment concession for the PAYG withholding payment summary annual report.
The ATO will be providing more details about how STP reporting will affect closely held employees, and rest assured Nexis will stay on top of future announcements and communicate these with you.
Image credit: Martin Bjork on Unsplash
