Do you need to report through single touch payroll (‘STP’) this coming 1 July 2018?
All employers must conduct a headcount at 1 April 2018 to determine whether they have 20 or more employees. If you do, you are referred to as a ‘substantial employer’ and will need to be STP compliant and ready to go on 1 July 2018.
Key questions about the 1 April 2018 headcount
- Is the headcount based on full-time equivalent? No. The headcount is based on the number of employees on the payroll on 1 April 2018, not the full-time equivalent.
- Who is included in the headcount?
- full-time employees
- part-time employees
- casual employees on the payroll on 1 April 2018 and worked any time during March 2018
- employees based overseas
- any employee who is absent or on leave (paid and unpaid)
- seasonable employees
- if you are part of a company group, the total number of employees employed by all member companies of the wholly-owned group must be included
- Who is excluded from the headcount?
- any employees who ceased work before 1 April 2018
- casual employees who did not work in March 2018
- independent contractors
- staff provided by a third-party labor hire organisation
- company directors
- office holders
- religious practitioners
- What if headcount falls below 20 anytime after 1 April 2018? Nothing, once you start STP reporting you will be required to report through STP permanently. The ATO has proposed to extend STP report to all employers from 1 July 2019 anyway.
We are a small business accounting service located on the beautiful Sunshine Coast and would appreciate the opportunity to help you, your friends, family and colleagues. Contact us on 07 5451 1118 for obligation-free confidential discussions today.