Employers with 20 or more employees that are not yet reporting their Single Touch Payroll (STP) information to the ATO may come in to difficulty as the 12-month transition period has lapsed, meaning the potential for penalties to be issued is now active.
Presenting at MYOB Partner Connect 2019 in the Melbourne Convention and Exhibition Centre which was attended by staff from Abbotts, ATO acting director of STP Angela Lehmann stated the ATO had already begun to send letters to a small number of large employers who are yet to either start reporting or request a deferral.
“We are at that point now with substantial employers where we’ve done a number of nudges, we’ve sent reminders and now we’re really saying it is time to move before penalties can apply,” Ms Lehmann said.
“You are not covered by that grace period anymore and it is time to communicate to us.”
One of the penalties a large employer may be subject to if they do not adequately comply with STP is the Failure to Lodge penalties. The penalty amount for a failure to lodge varies depending on the amount of GST turnover the entity that has not complied has, calculated as one penalty unit per 28 days that the information is withheld, up to a maximum of five penalty units.
Entities of larger turnover will have these penalties multiplied by amounts between two and five hundred depending on their size. With a single penalty unit currently being $210.00, the fine may become a significant burden.
If you are still to get on board with Single Touch Payroll and need assistance in doing so, please get in touch with the team at Abbotts – we are more than happy to help.