The ATO brought in a system about 2 years ago called Single Touch Payroll (STP) for employers to submit the payroll information after each pay cycle was complete rather than at the end of the financial year. This started from 1 July 2019 for most employers.
The ATO provided a quarterly concession for certain employers so that they were not required to supply this information to the ATO after each pay cycle. This concession was brought in for the following employers.
- Micro Employers (1-4 employees)
- Seasonal and intermittent Employers
- Closely Held Payees. Closely Held Payees are individuals who are directly related to the entity from which they are receiving a payment from. These can be –
- Family Members of a family business
- Directors or shareholders of a company
- Beneficiaries of a trust
These concessions meant that these employers were able to report on a quarterly basis when the BAS was lodged through MasterTax. The concession was available for the period 1 July 2019 to 30 June 2021, this concession will cease as of 30 June 2021.
Once the concession ends on 30 June 2021 all micro employers will need to lodge the payroll information after each pay cycle. This means that if you are paying your employees on a weekly, fortnightly or monthly basis, this will be how often you need to supply this information to the ATO.
The ATO is providing another concession for micro employers as long as it can be shown that there are exceptional circumstances. One of the exceptional circumstances is seasonal or intermittent workers. This concession will mean that you will be required to lodge your BAS and payroll information through MasterTax.
Closely Held Payees will have the option of reporting their wages either;
- After each pay cycle
- At the end of the quarter when their BAS is due or
- Provide an estimate at the end of the quarter.
These can all be done through your accounting software. Although if the employer has both Closely Held Payees and regular employees, you will need to report the regular employee’s payroll information to the ATO after each pay cycle.
Most accounting software currently in the marketplace have the ability to lodge the payroll information to the ATO after each pay cycle. It may be that all you need to do is add the payroll function to your current software.
Xero is an accounting software, which we use, that can lodge this information through a payroll subscription for $10 per month. This subscription is only for payroll, but it can be added to some other subscriptions if you are currently using Xero and don’t have payroll access.
If you do not wish to get a subscription to an accounting software to lodge the payroll information with the ATO, we can work together with you to lodge the payroll on your behalf.
Please contact us on (08) 8172 9150 or info@mastertax.com.au for further information.
