There have been changes to Single Touch Payroll (STP).
You need to start reporting additional information on or before each pay day. This is known as STP Phase 2.
The additional information will help Services Australia customers, who may be your employees, get the right payment. It will also reduce the need for you to provide information about your employees to multiple government agencies.
STP Phase 2 started on 1 January 2022. Some Digital Service Providers (DSPs) needed more time to update their products and transition their customers. If your DSP has a deferral, this covers you.
It’s important you understand which of the following circumstances apply to you:
- your payroll product is ready – it’s time for you to start STP Phase 2 reporting now or have a plan in place to transition as soon as possible.
- you are covered by your DSPs deferral – make sure you understand when your product will be ready and that you are ready to start Phase 2 reporting when it has been updated, or no later than the first pay day after your DSP deferral expires.
- the product you’re using is not being updated to offer STP Phase 2 reporting – your DSP will let you know if they have another product you can use. If not, you’ll need to choose a product that offers STP Phase 2 reporting.
If you’re not sure which of these circumstances applies to you, you need to speak with your DSP and/or your tax or BAS professional.
Contact The A Firm now to find out how we can help (07) 5596 4604
What you need to do
You need to start reporting the additional information when your product is ready, so you should start preparing now.
Many DSPs are releasing changes progressively. Your DSP will provide you with instructions and it’s important that you follow them.
We have resources to help you to understand the changes and prepare. These include:
- a factsheet outlining the key changes of STP Phase 2 reporting
- a checklist to consider what you need to do
- detailed reporting guidelines which outline the STP Phase 2 reporting requirements.
You can access these and other resources at ato.gov.au/STPresources
Need extra time to transition?
You can apply for a delayed transition if you need more time to start STP Phase 2 reporting. Visit ato.gov.au/delayedstp2transitions to find out how to apply.
Source: https://www.ato.gov.au/STP2