Single Touch Payroll – Phase 2
Single Touch Payroll (STP) Phase 2: What You Need to Know
As a business owner, preparing for the mandatory transition to Single Touch Payroll (STP) Phase 2 is important. This transition requires you to report additional payroll information to the Australian Taxation Office (ATO) to help Services Australia customers receive the correct payment and reduce the need for you to provide the employee information to multiple government agencies.
STP Phase 2 is the next step in the Australian Government’s initiative to simplify payroll reporting, streamline the process for businesses, and improve the visibility and accuracy of payroll data for the ATO. Businesses with 20 or more employees will need to report additional payroll information from 1 January 2022. Businesses with 19 or fewer employees had a deferred start date of 1 July 2022.
Under STP Phase 2 reporting, you’re required to report additional information on or before each payday. If you’re using a payroll product that’s ready for STP Phase 2 reporting, you should start preparing to report the additional information required by following your digital service provider’s instructions. Take time to review the employer guideline for STP Phase 2 reporting on the ATO website to ensure you correctly report the required information. Your digital service provider may also provide resources to assist you. Alternatively, you can ask your SLA Accountant/Bookkeeper to support you through this transition or refer to the ATO website here, which includes an employer checklist.
It’s essential not to delay this transition since it’s a mandatory obligation. If you need extra time to transition, you can apply for a delayed transition by following the ATO’s instructions or discussing with your SLA Accountant/Bookkeeper.
For more information, please contact us at 1800 618 800 or via email at admin@simmonslivingstone.com.au
