The ATO introduced a number of legislative changes last year that will impact many small business. Here is a quick summary of the areas that may affect your business or your clients.
Payments to contractors
The Taxable Payment reporting system has been extended. Originally applicable to the building and construction industry, it now includes businesses that offer all of the following services:
- Building and construction
- Security, investigation and surveillance
- Road freight
This means that businesses in these industries (even if only part of the business) must recorded and annually reported to the ATO payments to contractors for these services using the Taxable payments annual report (TPAR).
The next Taxable Payment Report is due by 28 August 2020 and must include contractor payments for all of these services.
Payments to employees
Single Touch Payroll (STP) is now applicable to ALL businesses include those with less than 20 employees. Using this online payroll reporting platform employers must now send payroll information including wages, salary payments and superannuation to the ATO either quarterly or at the time of the pay run.