STP reporting for WPN holders - your compliance checklist

Employers who use a Withholding Payer Number (WPN) do not have to report payroll through Single Touch Payroll (STP), the Australian Taxation Office has exempted WPN holders from STP reporting until 30 June 2033. If you’re an individual hiring a carer, a NDIS participant employing support staff, or a family employing a nanny, this change is a welcome relief.

Even though STP reporting isn’t mandatory right now, you still have payroll obligations. You must keep accurate records, withhold PAYG tax, pay superannuation where required, and provide payment summaries. The good news is you don’t need an ABN or a team of payroll experts to stay compliant. With the right setup and tools, meeting your obligations can be simple. Here’s your step‑by‑step checklist to stay on track.

Register for a Withholding Payer Number (WPN)

If you’re hiring staff but don’t have an Australian Business Number, the ATO requires you to register for a WPN. This requirement applies to individuals and non‑business entities with PAYG withholding obligations. You might need a WPN if you:

• Employ domestic staff such as a nanny, carer, cleaner or gardener.
• Are a NDIS participant self‑managing your support workers.
• Represent an international entity, an embassy or a community organisation.

A WPN ensures you can withhold tax from your employees and meet your PAYG obligations. STP reporting is optional until 2033.

Understanding the STP exemption

Under the latest ATO guidelines, WPN holders are exempt from STP reporting until 30 June 2033. You don’t need to apply or advise the ATO; the exemption is automatic. However, the ATO recommends keeping records that support your decision to use the exemption.

This exemption doesn’t mean you can ignore payroll obligations. You still need to:

• Withhold and pay PAYG tax and superannuation.
• Provide income statements to your employees.
• Lodge an annual payment summary with the ATO.

Choose an STP ready payroll system

Just because STP reporting isn’t required yet doesn’t mean you should use spreadsheets and bank transfers forever. A cloud‑based payroll system will:

• Accurately process payroll.
• Calculate PAYG and super automatically.
• Generate income statements and keep records organised.
• Allow you to activate STP reporting easily if you opt in before 2033.

CloudPayroll’s features are designed for WPN holders. You don’t need an ABN; our platform is built for individuals, small groups and non‑traditional employers. We take the stress out of payroll with local support, easy onboarding and tailored training.

Set up PAYG withholding

As a WPN holder, you’re responsible for withholding tax from your employees’ wages and reporting it to the ATO. Your payroll software should calculate PAYG automatically and provide reports to help you lodge payments each quarter (or more frequently if needed). CloudPayroll calculates PAYG for each pay run and produces reports that are ready for your ATO submissions.

Set up superannuation contributions (if applicable)

In many cases, WPN holders also need to pay superannuation, especially if you’re employing carers or support staff under the NDIS. Super must be calculated and paid to each employee’s chosen fund. CloudPayroll can manage this for you:

• Automatically calculates super obligations.
• Pays to multiple funds on your behalf.
• Keeps detailed records for audit and compliance.

Decide when to opt in to STP reporting

While you’re exempt until 2033, there are benefits to adopting STP reporting early:

• Payroll is automatically reported to the ATO each time you pay employees, reducing end‑of‑year paperwork.
• Employees can see year‑to‑date earnings and tax withheld in myGov.
• You’ll be ready when mandatory reporting starts in 2033.

CloudPayroll makes it easy to opt in to STP when you’re ready. With a few clicks, you can start sending pay events electronically and stay ahead of compliance changes.

Keep accurate employee records

ATO rules require WPN employers to keep records of pay rates, hours worked, PAYG, super and employment history. CloudPayroll simplifies record‑keeping with:

• Online leave management.
• Timesheets through our built‑in Timelog feature.
• Secure employee document storage (contracts, TFN declarations, etc.).
• Real‑time access to historical payroll data.

Stay compliant the easy way

STP compliance might have felt like a big step, but the exemption gives WPN holders time to prepare. With the right payroll system and support, meeting your obligations is easy to manage, even if you don’t have a business background. CloudPayroll is built to help you stay compliant without the hassle. You can manage PAYG and Super, keep accurate records and start STP reporting.

Ready to simplify payroll? Get in touch with our friendly team or book a free demo today to see how easy payroll can be.