The ATO has listed a number of exemptions for Single Touch Payroll (STP), with registered tax and BAS agents now able to apply on behalf of an employer who runs their business in areas with intermittent or no internet connection.
Agents can apply for the exemption through the tax or BAS agent portal or the new online services for agents.
Applicants will need to explain the reasons why they are unable to report through STP, any steps taken to attempt to get ready for STP, and supporting evidence for their particular circumstance.
Conversely, there are a number of exemptions that will not require an employer or their agent to apply for.
These include long service leave and redundancy schemes, where employers in certain industries, such as building, construction or cleaning, may make regular contributions to a long service leave or redundancy scheme for their employees.
While employers are exempt from reporting those payments through STP for the 2018–19 and 2019–20 financial years, they will need to start reporting those payments through STP from 1 July 2020.
Employers with a withholding payer number (WPN) because they are registered for PAYG withholding and are not entitled to an ABN, are exempt from STP reporting for the 2018–19 and 2019–20 financial years. They will need to begin reporting through STP from 1 July 2020.
Certain employees, such as foreign employees, are also exempt from STP reporting for the 2018–19 financial year, with the ATO set to consider concessional reporting arrangements for these types of employees for the financial year commencing 1 July 2019.