STP & ATO Reporting

Trusted Cover User SandyA
51 Posts
Trusted Cover User
Australia
Trusted Cover User

51Posts

19Kudos

0Solutions

STP & ATO Reporting

Hi - came across this information on the ATO website which causes me some concerns. Our payroll is very small and standard with 5 x fixed employee payments every Friday (for the week just worked). However, our payroll staff only work Tuesday & Wednesday so the payroll/payslip is not processed until the following week - after staff have finished the working week and been paid. This allows them time to do the leave adjustments etc and email the payslips knowing the information is correct. According to the ATO, this is illegal? This is what it says: "You have submitted your STP report several days after paying your employees. The law requires you to submit your STP report on or before the day you pay your employees. If you make an out-of-cycle payment, this can be reported in your next regular pay cycle. We will not be issuing penalties for late reporting in the first year of STP reporting. However, if you are consistently late submitting your reports, you can expect us to issue reminders and you may be subject to penalties after the first twelve months of STP reporting." This is very concerning for a small business with part-time employees. Does this mean we need to change our paydates or get our staff to change their rostered days of work?
5 REPLIES 5
Ultimate Cover User bungy15
1,055 Posts
Ultimate Cover User
Australia
Ultimate Cover User

1,055Posts

849Kudos

0Solutions

Re: STP & ATO Reporting

Hi @SandyA 

Unfortunately it does mean you will have to change your pay week or get payroll staff to change days. I was in a similar situation and realised this would be a problem when STP was first introduced. I did a list of options for my employees, as changing the pay week meant a short pay week for us, including the option of me changing my work days. They chose changing the pay week and I had the time to give them a months notice so they would be prepared. Hope you find a solution that doesn’t cause to much disruption

Cheers

Tracey

Trusted Cover User SandyA
51 Posts
Trusted Cover User
Australia
Trusted Cover User

51Posts

19Kudos

0Solutions

Re: STP & ATO Reporting

Thanks @bungy15 for your response.  Sadly, I think this is going to impact micro/small businesses and make payroll administration a stressful job - when admin take holidays or sick leave there may not always be someone available or able to cover their role.  Pays are done on time, but quite often the paperwork and payroll admin is caught up when they return to work.  

 

Another example of bureaucracy not thinking about small businesses and how they are run in real life situations.

Ultimate Cover User bungy15
1,055 Posts
Ultimate Cover User
Australia
Ultimate Cover User

1,055Posts

849Kudos

0Solutions

Re: STP & ATO Reporting

Hi @SandyA 

 

You are right - it is making payroll more stressful for small business. STP has done nothing to make EOFY easier, as claimed by the ATO. We still need to reconcile, finalise, close the payroll year, upgrade and load new tax tables - ALL prior to doing the first payrun of the new year.

 

Personally I think the reasons for STP are purely to benefit the ATO and government departments.

 

Good Luck

Tracey

Trusted Cover User SandyA
51 Posts
Trusted Cover User
Australia
Trusted Cover User

51Posts

19Kudos

0Solutions

Re: STP & ATO Reporting

I'm glad I'm not the only one stressing about how to manage all of this!   Best of luck to you too.  I'm sure this forum and others like it - plus the ATO phone lines -  will be overwelmed in the next few months.  I am hoping that some changes will be implemented by the ATO down the track to help reduce the admin overload STP has caused (such as reporting within a more relaxed time frame)..


Sandy

Highlighted
Trusted Cover User SandyA
51 Posts
Trusted Cover User
Australia
Trusted Cover User

51Posts

19Kudos

0Solutions

Re: STP & ATO Reporting

Further investigation with ATO:  You can lodge early, weeks in advance.  You can also lodge what is called an Operational Deferral.  If you are away for 3 months, or your payroll administrator is sick indefinitely, for example, you lodge the deferral with the ATO and specify how long it will be for.  You then catch up when you return.  This is available in the business portal.

 

I logged onto my portal and in the Manage Employees section there is the option for STP Deferral - these are the options available.

 

image.png

Didn't find your answer here?
Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post