To work out if you have to report through Single Touch Payroll (STP) from 1 July 2018, all you need to do is count the number of employees on your payroll on 1 April. If you have 20 or more employees, you’ll need to get ready for STP this year.
You can do the headcount after 1 April, but the count must reflect the number of employees who were on your payroll on 1 April. You don’t need to send the headcount to the ATO, but you should keep a copy of the count for your records.
Busy times such as long weekends, seasonal work or special events often mean employers need to hire additional workers to keep up with the workload and temporarily increase their headcount to 20 or more employees on 1 April.
You will be exempt from reporting under STP for the 2018 financial year if you:
It is important to no note that once you become a substantial employer you will need to continue reporting through STP even if your employee numbers drop to 19 or less – unless you apply for and are granted an exemption.
Take care also if your business is part of a company group – in that case you must include the total number of employees employed by all member companies of the wholly-owned group.
How to count your employees
Include in headcount:
Don’t include in headcount:
Directors, office holders and religious practitioners are not included in the headcount. They are not considered employees within the common law meaning of the term.
However, when you start reporting through STP you will need to report their payment information. This is because the payments are subject to withholding and are currently reported in the Individual non-business payment summary.