STP reporting obligations
If you are an insolvency practitioner for an 'incapacitated entity' under administration, you will need to understand 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, the Fair Entitlements GuaranteeExternal Link (where applicable), either superannuation liability or ordinary time earnings (or both), 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, 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.
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 directly through their STP-enabled software solution.
Where the company continues to trade following a Restructuring or Deed of Company Arrangement (DOCA), a new branch number will be issued. They must update their STP reporting to reflect this new branch number.
You control payroll using the 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're reporting for:
- a pre-insolvency period using the entity's software, you don't need to change the integrated client account number
- for the post-insolvency period, you will need to change the integrated client account number to the administrator or 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
- 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-enabledExternal Link.
This means you will be able to generate and lodge the STP reports for an incapacitated entity’s payroll from your practice software.
Appointed as an insolvency practitioner
As the appointed insolvency practitioner, you aren't required to report STP on behalf of the incapacitated entity until we have issued the incapacitated entity a new branch number.
Once the branch number has been issued, you should update your STP reporting to reflect the new branch. You must ensure that STP reporting:
- commences from 'nil' on the post-insolvency branch from the next subsequent pay day
- includes the year-to-date amounts paid to employees of the incapacitated entity from the date you were appointed.
Any amounts the employer has reported through STP prior to the date of appointment should be reviewed. Where possible, the employer should finalise STP reports under their ABN and branch number.
Where the employer can't finalise previously reported STP amounts, you or the employer should advise us so that we can make sure the correct information is displayed in the employee's income statement and pre-filled in myTax.
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 Online services for business
- select 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 – Appointment or cessation of a representative of an incapacitated entity.