The Australian Taxation Office has advised small employers in the mining and engineering industries to get ready for Single Touch Payroll (STP) ahead of its September 30 start date.
STP is a new way of reporting tax and superannuation information, where employers report employees’ payroll information, pay as you go (PAYG) withholding and superannuation information to the ATO each time they are paid.
The system became mandatory for small employers from July, but the ATO granted an extension to businesses that needed more time to get ready due to the company or industry’s unique circumstances.
ATO assistant commissioner Jason Lucchese said now was the time for small employers to be aware of their options and take the right steps to get ready.
“More than 400,000 employers are already reporting their employees’ tax and superannuation information digitally through STP, but we understand all employers operate in slightly different ways and every industry has unique challenges which can affect their payroll processes,” Lucchese said.
“Regardless of whether you’re ready to start reporting, or if you still need more time to get ready, there are options available to you.”
ATO is reportedly working with employers to ensure they understand their options for STP, whether that is reporting now, getting a deferral or working with their tax or BAS agent.
The Commissioner of Taxation Chris Jordan has reassured small employers that the ATO’s approach will be “flexible, reasonable and pragmatic with no penalties for mistakes, missed or late reports” for the first year.