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Single touch payroll

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If company A, with less than 20 employees, is associated with other companies and as a whole group all associated companies (A included) employ more than 20 employees, does company A need to comply with the STP system?

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Hi @Gaby,

 

Welcome to our Community!

 

All substantial employers need to report via Single Touch Payroll (STP). To find out if you are a substantial employer, count the employees on your payroll on 1 April 2018. Generally, if you're part of a company group, you must include the total number of employees employed by all member companies of the wholly-owned group.

 

You can find more information about STP and the requirements on our website, or alternatively if you have further questions or wish to speak with us you can phone 13 28 66 between 8am - 6pm, Monday to Friday.

 

Thanks, JodieH.

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Hi @Gaby,

 

Welcome to our Community!

 

All substantial employers need to report via Single Touch Payroll (STP). To find out if you are a substantial employer, count the employees on your payroll on 1 April 2018. Generally, if you're part of a company group, you must include the total number of employees employed by all member companies of the wholly-owned group.

 

You can find more information about STP and the requirements on our website, or alternatively if you have further questions or wish to speak with us you can phone 13 28 66 between 8am - 6pm, Monday to Friday.

 

Thanks, JodieH.

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I'm new

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Hi Jody, I was speaking to someone who said. "I contacted the ATO this morning to clarify guidelines of Single Touch Payroll as to whether all employees under a DGE for Payroll Tax are to be included into total count 1 April 2018. I was advised that if each of the other companies of the DGE company had individual ABN or TFN then not to include them into count." Is this information correct and can you define a "company group" a little more please.

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Hi @Taust,

 

Thanks for your patience whilst we received specialist information regarding your query.

 

If you are part of a company group, you must include the total number of employees employed by all member companies of the wholly-owned group.

 

Section 975-500 of the Income Tax Assessment Act 1997 provides the definition of a wholly owned group, and in essence provides that there must be a 100% subsidiary relationship between the companies. This means that the shareholding in each company is important. In the example below, the three companies may be part of a wholly owned group if the shares in all three companies are only owned by those three companies, or by a common holding company. For example:

  • If company A owns 100% of the shares in company B, and company B owns 100% of the shares in company C;
  • If company A owns 100% of the shares in both company B and company C.

If companies are not members of a wholly owned group, then each company’s own employees are taken into account separately for the purposes of determining whether they are a substantial employer. Those companies who are not deemed substantial can commence reporting through Single Touch Payroll voluntarily at any time.

 

Hope this helps, JodieH.