single touch payroll phase 2

19 May

SINGLE TOUCH PAYROLL – PHASE 2 – WHAT YOU NEED TO KNOW

Posted at 09:03h

On 1 January 2022, the STP Phase 2 was introduced. This phase expands the obligatory employer reporting requirements as well as making it easier to provide specific employee information to multiple government agencies.

STP Phase 2 has many benefits for employers, and employees. The changes will assist streamlining information between ATO and Services Australia, making it easier to interact with Centrelink and Medicare as well as automating TFN declarations straight to the ATO.

WHAT TO DO NEXT?

Make sure you check and understand when your digital service provider (your software payroll provider or product i.e. Xero) will update their product and be ready for the new reporting requirements. Most providers are releasing the changes progressively and have already introduced some of the updates so you can start preparing for the change now.

Whilst you’ll need to start reporting more information to the ATO, some things will stay the same, such as;

  • the way you file your pay run to the ATO
  • the due date for your report
  • the types of payments to be reported
  • tax and superannuation obligations
  • end of year finalisation requirements

FOR XERO USERS & STP PHASE 2

If you are a Xero user, new information fields are now available in Xero Payroll to help to prepare employers for this transition to the new mandatory reporting. These fields include updated employee pay codes and the types of allowances available.

Xero have also provided some helpful guides on their website:

Xero and STP Phase 2 GUIDE
Xero and STP Phase 2 CHECKLIST

Please note that Xero customers are currently covered by a deferral secured with the ATO until 31 December 2022.

More information on STP Phase 2 can be found here – Employer Reporting Guidelines

Please don’t hesitate to get in touch with us at Curve if you need any assistance with these changes, we are always happy to help! Contact us on 03 9588 9000 or [email protected]

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