Featured

Single Touch Payroll Penalties

Penalties

• $210 for a late STP lodgment and then for every 28 days it isn’t lodged.

• Large employers these penalties can apply NOW.

• Small employers (<20 employees) no penalties until after 30 June 2020, unless the ATO has issued you with a demand.

• Late payment penalties – same as always

• Late Super penalties – same as always

Featured

Blog page

How STP works

STP works by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll.

When you start reporting:

  • Your payroll is run and you pay your employees as normal, and provide a payslip
    • your pay cycle does not need to change (you can continue to pay your employees weekly, fortnightly or monthly)
  • your STP-enabled payroll software will send the ATO a report which includes the information the require, such as salaries and wages, pay as you go (PAYG) withholding and super information

You will be reporting super liability information through STP for the first time. Super funds will also be reporting to the ATO. They let the ATO know when you make the payment to your employees’ particular super fund. This is an important step toward making sure employees are paid their correct entitlements.

Your employees will be able to see their year-to-date tax and super information in ATO online services, which can only be accessed through myGov. Their data is updated every time you report (each pay day for most employers). Without STP reporting, employee data is only reported at the end of the financial year.

If you make mistakes in your STP report, you can correct it in your following report.

At the end of the financial year, you’ll need to finalise your STP data.

You will no longer have to give your employees a payment summary for the information you’ve reported and finalised through STP. Once you finalise your data, your employees or their registered agent will be able to lodge their income tax return using the STP information available in ATO online/

You will no longer need to provide the ATO with a payment summary annual report (PSAR) at the end of the financial year for the payments you report through STP.

Due Date for Super Guarantee contributions

2nd Quarter October to December-

contributions must be in the fund by 28th January.

The super guarantee charge is not a tax deduction if not paid by these dates.

Refer to the ATO for details regarding any SGC charges applicable if not paid by due date.

New ATO SG Law – Salary Sacrificing Super

The ATO Explains the New SG Law with Salary Sacrificing Super

From 1 January 2020, salary sacrificed super contributions cannot be used to reduce your super guarantee obligations, regardless of the amount your employee elects to salary sacrifice. This means for the purposes of super guarantee (SG), the salary sacrificed amount will not count towards your super guarantee obligations.

In addition, the amount of super you are required to pay, to avoid the super guarantee charge will be 9.5% of the employee’s ordinary time earnings (OTE) base. The employee’s OTE base is the sum of the employee’s OTE and any sacrificed OTE amounts.

Important!

BUSINESS ACTIVITY – Quarterly DUE DATESDue date
1. July, August and September28 October
2. October, November and December28 February
3. January, February and March28 April
4. April, May and June28 July

A later lodgment and payment due date does not apply for quarter 2 because the due date already includes a one month extension.

Super guarantee

Super guarantee contributions to be made to the super fund for every quarter.

Quarter 1 (July–September) – due 28 October

If you do not pay minimum super contributions for quarter 1 by this date, you must pay the super guarantee charge and lodge a Superannuation guarantee charge statement – quarterly with us by 28 November.

Quarter 2 (October–December) – due 28 January

If you do not pay minimum super contributions for quarter 2 by this date, you must pay the super guarantee charge and lodge a Superannuation guarantee charge statement – quarterly with us by 28 February.

Quarter 3 (January–March) – due 28 April

If you do not pay minimum super contributions for quarter 3 by this date, you must pay the super guarantee charge and lodge a Superannuation guarantee charge statement – quarterly with us by 28 May.

Quarter 4 (April–June) – due 28 July

If you do not pay minimum super contributions for quarter 4 by this date, you must pay the super guarantee charge and lodge a Superannuation guarantee charge statement – quarterly with us by 28 August.