Employers with a withholding payer number will be given an exemption from Single Touch Payroll to 1 July 2021.
STP exemption extended for WPN holders
While Single Touch Payroll has now been rolled out for businesses of all sizes, the ATO has advised that the exemption for employers with a withholding payer number (WPN) reporting using STP has been extended to the 2020–21 financial year.
Employers with a WPN will be required to start reporting these payments through STP from 1 July 2021.
“If you decide to make use of this exemption, you don’t need to apply or advise us. You should keep records that support your decision,” the ATO said in an online update.
“If you are already reporting quarterly through STP, your quarterly reports are due at the same time as your activity statement.”
WPNs are given to certain individuals, partners in partnerships and non-individual entities to meet their tax and superannuation obligations.
Individuals who are not conducting a business; who don’t have an Australian business number (ABN); or are employers of domestic staff, including nannies, carers, cleaners, gardeners, housekeepers and support workers directly employed by participants in the national disability scheme are eligible for a WPN.
Non-individual WPN holders include school canteens, sporting clubs, international entities and embassies.
According to the ATO, additional consultation will be taken this year to determine the “best way” for WPN holders to report through STP.