February NEWSFLASH

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

https://www.ato.gov.au/Business/Single-Touch-Payroll/Concessional-reporting/Closely-held-payees/#Waystoreportyourcloselyheldpayees

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:

https://bennetts-tax-bas-service.appointlet.com