Single Touch Payroll (STP) Phase 2 was announced in the 2019-20 federal budget to provide ease for employers who are required to send their employees’ information to multiple government agencies.
Following the commencement of STP Phase 2, you will need to provide additional information in your STP report.
What are the main changes in STP Phase 2?
Employment types (full-time, casual, labour-hire, etc.) will now be declared in the STP report.
Employee’s income components (paid leave, bonuses, commissions, allowances, etc.) will now be itemised.
Employers will now need to add country codes for Australian resident employees working overseas.
Tax File Number (TFN) declarations will no longer be required to submit to the ATO and will be included in the STP report. Employees will still be required to provide you with their TFN declarations.
Lump Sum E payment details will now appear in the employee’s income statement.
Child support garnishees and deductions may now be included in the STP report.
When will STP Phase 2 commence?
The mandatory commencement for STP Phase 2 was on 1 January 2022, but the ATO has granted deferrals to various software providers. The new reporting start dates are as follows:
Xero – 31 December 2022
MYOB – 1 January 2023
Reckon – 1 January 2023
QuickBooks – 1 March 2022
As an employer, being well-informed about these changes is essential, even if your software is not yet ready to be fully compliant with the changes. If you have any questions about STP Phase 2, reach out to us. Send us a message or give us a call at 07 3878 9181 so we can discuss.
