Employers with closely held payees can choose to report:
- Actual payments each pay day;
- Actual payments quarterly; or
- A reasonable estimate quarterly.
The STP quarterly reporting concession for micro employers is only available to micro employers who meet certain eligibility requirements. For applications for a period commencing after 1 July 2021 the employer needs to meet the guidelines for exceptional circumstances.
Further, the mandatory start date for STP Phase 2 reporting (which involves providing more detailed information to the Australian Taxation Office (ATO)) is 1 January 2022. Having said that, the ATO is providing some flexibility in terms of meeting this deadline. The ATO has advised that:
- If your Phase 2 reporting solution is ready for 1 January 2022, you should start Phase 2 reporting from 1 January 2022.
- If you can start Phase 2 reporting before 1 March 2022, you will be considered to be reporting on time and you will not need to apply for more time.
- If you need more time, you will be able to apply for a delayed transition from December 2021.
- The ATO will not impose penalties for genuine mistakes for the first year of Phase 2 reporting, that is, until 31 December 2022.