In response to the COVID-19 crisis, the ATO has extended the exemption deadline from 1 July 2020 to 1 July 2021, meaning that small employers – those with 19 or fewer employees – don’t need to report what the ATO calls ‘closely held payees’ through STP enabled software until mid-next year.
A closely held (related) payee is someone who is directly related to the business, company or trust that pays them, such as family members of a family business; directors or shareholders of a company; and beneficiaries of a trust.
However, the ATO has remained that if “you have any other employees (also known as arm’s length employees) they must be reported through STP on or before each payday unless you are eligible for a micro employer (those with one to four employees) reporting concession”.
The micro employer reporting concession allows registered tax or BAS agents to report on their behalf on a quarterly basis until 30 June 2021.
