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ATO ESS 2023 Reporting Deadlines

ATO Employee Share Scheme 2023 Reporting Deadlines Approaching: Ensuring Compliance for Employers

As we progress through 2023, employers should now turn their attention to the impending reporting deadlines associated with Employee Share Scheme (ESS). These deadlines, outlined by the Australian Taxation Office (ATO), are integral to ensuring your company’s tax compliance.

Mark these dates on your calendar:

  1. 14 July 2023: Employers must provide an ATO-prescribed statement to Australian resident taxpayers participating in an ESS.
  2. 14 August 2023: Employers must report the benefits provided to these employees to the ATO.

We outline your obligations as an employer under the ESS, helping you meet these deadlines confidently and effectively.

Employee Share Scheme Interests and Reporting Obligations

Employee Share Scheme interests broadly refer to either a beneficial interest in a company share or the right to acquire such an interest. When an employee or their associates acquires ESS interests under a taxed-upfront ESS at a discount during the financial year, or a taxing point occurs for ESS interests acquired under a tax-deferred ESS happened or could have happened in a financial year, or a start-up concession acquisition event transpires, an ESS statement must be provided to the employee by 14 July 2023.

Similarly, the ESS annual report, due to the ATO by 14 August 2023, should be meticulously prepared with relevant details including plan identifier, acquisition date, plan date, and Tax File Number (TFN) amounts withheld from discounts on ESS interests if a taxing point arose during the financial year.

Navigating TFN Withholding for Employee Share Scheme

When it comes to TFN withholding for ESS, whether a TFN has been provided or not directly affects your obligations as an employer. If a TFN has been provided, and tax has been withheld at the employee’s request, this can be offset against Pay As You Go (PAYG) withholding and remitted to the ATO. However, if no TFN has been provided, you are required to withhold tax at the highest marginal rate, recoverable from the employee’s salary or wages.

The Importance of Amending Reports

Any material change to or omission from any information given to your employee on their ESS statement requires you to provide corrected information within 30 days. Timely amendments are essential for ATO compliance and maintaining transparency with your employees.

Read more about the new corporate tax Transparency Measures

Preparing for Employee Share Scheme Reporting in 2023 with Andersen

While preparing for the ESS reporting in 2023, accuracy and punctuality are vital. Employers are encouraged to track all pertinent ESS data and maintain detailed records.

Andersen is here to help you with your corporate tax to navigate these ESS reporting requirements with ease. Our team of experienced professionals can assist you in understanding and fulfilling your obligations, ensuring your compliance with the ATO’s guidelines. We offer tailored solutions to streamline the collection and organisation of required data, and our expertise allows us to address your specific needs and circumstances effectively.

Contact us today to learn how Andersen can assist you with your ESS reporting requirements, helping you meet the 2023 deadlines confidently and compliantly. Remember, with the right support, tax compliance need not be a complex task.

For any enquiries related to this update, contact us today.

Cameron Allen

Cameron, Office Managing Director, and Founding Partner of Andersen Australia is a seasoned tax expert with 25+ years’ global experience. He excels in corporate and international tax, guiding clients through mergers, acquisitions, and restructures. Cameron serves a diverse range of clients and holds multiple board positions.

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