What are the changes?
From 1 July 2021 all employers must lodge Single Touch Payroll (STP) with the ATO including those considered ‘closely held’ i.e. where the business employees are also the business owners or family. Previously businesses employing only family members were not required to lodge STP.
Each closely held business can choose one of three methods to lodge STP:
- In real time as payroll is processed
- Quarterly or
- an estimate Quarterly based on the prior year details.
Phase 2 changes
Further changes known as phase 2 changes to STP have been postponed to 1 January 2022. The phase 2 changes will see STP reporting to include additional information about employees and more details about the type of payments made to employees.
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