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  • STP for insolvency practitioners

    If you are an insolvency practitioner for an 'incapacitated entity' under administration, you will need to work out how the entity's Single Touch Payroll (STP) obligations can be met.

    Payments that need to be reported include:

    • all payments of salary and wages, fair entitlements guarantee (where applicable), superannuation liability and/or ordinary time earnings and pay as you go (PAYG) withholding for employees of your client
    • any component of a dividend in lieu of salary and wages or leave, where that component is separately identifiable
    • any other payments subject to withholding that have typically been included in the employees PAYG withholding payment summary.

    If your client is already reporting through STP – then you should continue to report on or before the pay date either through the client’s software or your own practice software.

    The way to report STP obligations depends on the circumstances, such as who is controlling the payroll and associated reporting.

    Find out about:

    See also:

    Client controls payroll and associated reporting

    If the client continues to manage their payroll software, pay-runs and associated reporting, they can submit their STP data to the ATO directly through their STP-enabled software solution.

    You control payroll using entity’s software

    If you are using the incapacitated entity’s software to run pays and generate associated reporting, you can lodge the STP reports from their STP-enabled software.

    If you need to report for a pre-insolvency period using the entity's software, you don't need to change the integrated client account number.

    If you're reporting for the post-insolvency period, you will need to change the integrated client account number to the administrator's/liquidator's integrated client account number.

    However:

    • If payments are made under the incapacitated entity’s ABN, then the STP reports should reflect this ABN.
    • If payments are made under a new ABN for the purposes of the administration, the reports should reflect this ABN.

    You control payroll using your software

    Most insolvency practice software has now been updated to become STP-enabled.

    This means that you will be able to generate and lodge the STP reports for an incapacitated entity’s payroll from your practice software.

    Seeking more time or an exemption

    If your client has entered into administration and you need more time to move them onto STP reporting or you're seeking an exemption from STP reporting, you can apply online. To apply for a deferral of exemption on behalf of your client:

    • log in to the Business Portal
    • select Manage employees then STP deferrals and exemptions.

    Appointment or cessation as a representative

    If you're appointed as, or cease being, a representative of an incapacitated entity, you must notify us using the existing form and process.

    See also:

    Last modified: 29 Jul 2019QC 59762