From July 1, Single Touch Payroll (STP) starts for employers with less than 20 employees. STP is a new way of reporting tax and super information to the ATO. This will be done each time you run a payroll, the details of the payslip will be sent to the ATO electronically.
The majority of families with a nanny will be exempt until July 2021.
The majority of households that employ a nanny do it through a WPN ( Withholding PAYG Number) rather than an ABN. The WPN allows the employer to deduct tax on behalf of the ATO without running a business.
Employers with a WPN are exempt from STP reporting for the 2019–20 and 2020-21 financial years. But you will be required to start reporting these payments through STP from 1 July 2021.. Refer to the ATO website for confirmation.
The idea behind the change with STP, is to create a more level playing field between employers who do the right thing and those that don’t. For example it will be obvious far more quickly to the ATO if the super has not been paid to the super fund on time.