Single Touch Payroll (STP) Phase 2 has been introduced as an expansion to streamline employee’s information to government agencies.
To assist our clients with this transition we have accumulated information and answered some important questions to ensure you are on top of Single Touch Payroll Phase 2:
1. What is Signing Touch Payroll
As stated by the ATO “STP works by sending tax and super information from your STP-enabled payroll or accounting software to the ATO as you run your payroll.” This means as an employer you run your payroll, pay your employees and give them a payslip. Whether you pay your employees weekly, fortnightly, or monthly your STP enabled software will dispatch reports to the ATO with the information they require. This information includes salaries, wages, PAYG withholding and super liability information.
The ATO uses the information reported by you to match to their employer and employee records. Your employee’s data such as their year-to-date tax and Income statements are then accessible to them each time you report. At the end of the financial year, you will finalise your STP data and declare you have completed reporting for that financial year.
2. What Isn’t Changing
We are aware that the expansion of STP Phase 2 will report additional information, but it should be noted that previous reporting information will stay the same.
The previous reporting information that is still required will include:
- The way you lodge
- The due date
- The types of payments that are needed
- Tax and super obligations
- End-of-year finalisation requirements
3. Key Changes
As the STP Phase 2 aim to create a more streamlined system for government agencies and employers they have added additional information that each employer is required to report. The newly requested information should already be captured in your current payroll software.
The key changes to the STP report include:o
- Disaggregation of gross payments
- Employment and taxation conditions
- Income types
- County codes
- Child support
- Business Management Software IDs and Payroll IDs
4. When do businesses need to comply with STP Phase 2 requirements?
Please note that each software provider has a mandatory due date of when you must have implemented STP Phase 2, as follows:
Xero Payroll
Change must be implemented by: 31 March 2023
Please find link to Fact Sheet to assist you with implementation: https://xero.app.box.com/v/move-to-stp-phase-2
MYOB
Change must be implemented by: 1 January 2023
Please find link to Fact Sheet to assist you with implementation: https://help.myob.com/wiki/x/0QYNB
Reckon
Change must be implemented by: 30 June 2023
Please find link to Fact Sheet to assist you with implementation: https://www.reckon.com/au/support/stp-phase-2/
Quickbooks Online
Change must be implemented by: QuickBooks has implemented STP2 in February 2022
Please find link to Fact Sheet to assist you with implementation: https://quickbooks.intuit.com/au/blog/payroll/stp-phase-2/
Comments are closed.