Single Touch Payroll deferred to 1/7/2020 for closely held payees

The ATO has announced a helpful concession on the Single Touch Payroll (STP) obligations for payments made to “closely held payees” (essentially owners and family members).
In recognition of the fact that business owners and their families often classify what they take from the business as Drawings, and then at a later time determine the amount that constitutes a salary, the ATO will not require reporting on such amounts until after 1st July 2020 – an extra 12 months on the current commencement date for other employees.
For smaller employers (eg independent contractors) who only make payments to owners and family members, this announcement will in effect defer the commencement of the STP system for another 12 months.
The ATO is considering a system whereby reporting for such employees will only be required with the BAS on a quarterly basis, rather than each time there is a pay run. We can expect further announcements from the ATO on this topic in due course.

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