The extension of Single Touch Payroll (“STP”) to employers with 19 or less employees has finally passed both Houses on 12th February 2019, after amendments were tabled late last year.
This will mean that employers with 19 or less employees will have to report under STP rules from 1 July 2019. Businesses with 20 or more employees began reporting from 1 July 2018.
There are approximately 782,000 businesses with 19 or less employees in Australia. That’s about 36.8 per cent of Australian businesses, according to ABS data. Broken down, microbusinesses with 1–4 employees account for 585,000 of that total, and the remaining 197,000 are businesses with 5–19 employees.
ATO Commissioner Chris Jordan has also pledged to ease micro businesses into the STP regime, stating that they will not be forced into purchasing payroll software, with a number of alternate options set to be available, including the option of allowing their registered tax or BAS agent to report quarterly, rather than each time they run their payroll.
Exemptions to STP reporting will also be available to businesses that have no internet or an unreliable connection.