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Micro Employer - 1 director plus 1 employee

Initiate

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Replies 4

Hi,

 

I have a client who is planning to report STP as a micro employer.

 

Prior to December 2019, there had been only one director. Since then, he has hired one casual employee (not a closely held employee).

 

As my client is a micro employer (1 director and 1 employee), he needs to lodge STP reports:

1) for the employee quarterly until 30/6/2021, then report on each pay event;

2) for the director,

    since the employee needs to be reported quarterly from now, does the director needs to reported in the same way, or

    follow the rules for closely held payee of micro employer below:

          stage 1: no need to report till 30/6/2020;

          stage 2: quarterly report from 1/7/2020.

 

Please advise. Thanks in advance.

 

Happy New Year and kindest regards,

 

Steve

1 ACCEPTED SOLUTION

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Devotee Registered Tax Practitioner

Replies 1

closely held employee is not treated differently as such but is allowed an additional concession in terms of STP reproting.

The ATO webiste has attempted to provide an explanation but led you to a complicaiton.

So..... keep it simple

report any employee when you pay them

If the amount paid to the closely held employee changes you are allowed to reduce their pay in a latter quarter.

 

Micro quarterly concession is still until 30 june 2021 but we are advocating that is should continue

4 REPLIES 4
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Devotee Registered Tax Practitioner

Replies 3

HI

Keep with what your best practice natural business system is.

The ATO will be quite happy if you lodge quarterly for the closely held employee now ie before the mandatory date of july 2020.

THen you could do both employees at the same time.

Equally you could lodge reports when you pay them.  So you dont have to wait for the quarterly report

 

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Initiate

Replies 2

Hi, Matthew.

 

Thank you for your solution.

 

My understanding from the ATO's website is that the director, as closely held employee, is treated differently as regular employee in terms of STP reporting. Your solution seems more practical - report both at the same time. STP reports can be submit quarterly for both (1 director + 1 employee) at the same time till 30/6/2021 and then on each pay event.

 

Is it 30/6/2020 or 30/6/2021 the deadline for quarterly STP report on the employee of a micro employer?

 

Kind regards,

Steve

Highlighted

Most helpful response

Devotee Registered Tax Practitioner

Replies 1

closely held employee is not treated differently as such but is allowed an additional concession in terms of STP reproting.

The ATO webiste has attempted to provide an explanation but led you to a complicaiton.

So..... keep it simple

report any employee when you pay them

If the amount paid to the closely held employee changes you are allowed to reduce their pay in a latter quarter.

 

Micro quarterly concession is still until 30 june 2021 but we are advocating that is should continue

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Initiate

Replies 0

Thank you again Matthew.

 

Best regards,

Steve