STP update –
Effective 1 July 2021 Closely held payees, ie working Company Directors or not included on regular wage pay run, beneficiaries of a Trust
Payments to closely held payees MUST be reported thru STP – ‘drawings’ are no longer part of the pay process or end year reconciliation process. This includes all payments made to a non employee Director or relative or other ‘non arms-length payee ie shareholder’
An alternative is to report a ‘reasonable estimate’ quarterly – yet the STP reporting method still applies.
If you currently have employees – the process is to include yourself in the regular pay cycle
Can be reported monthly or quarterly depending on your current reporting requirements – however the actual STP reporting occurs at time of payment either on ad-hoc weekly, fortnightly monthly etc. PAYG W is also calculated on these payments as is superannuation.
Your existing software may need to be updated to include STP, or a stand alone STP product can be purchased.
Read here for further info
bennetts tax & bas service is here to help with this additional compliance
Any questions, or if you wish to discuss please contact this office or book a time here: