STP Phase 2
Single Touch Payroll (STP) commenced on the 1st of July 2018 for employers with 20 or more employees.
The ATO undertook a long period of consultation with businesses, software/digital service providers (DSP), and those who would be affected such as Payroll, Finance, and Human Resources Professionals. The initiative aims to reduce reporting and administrative burdens between employers and government agencies.
The ATO continues to work on this initiative and released STP Phase 2 with a mandatory start date of 1st January 2022. As with Phase 1, the ATO has enabled business and service providers not yet ready, to apply for deferrals in their transition. It is important that all businesses are aware of their obligations so as to remain compliant with regards to transition deadlines.
What did we learn from Phase 1?
STP Phase 1 provided us with the ability to send directly to the ATO information on our employees’s salaries and wages, PAYG, and superannuation liability.
Via online services our employees could see this data reported to the ATO and updated every time they were paid.
Finalisation of year end was made easier and more efficient for both employers and employees.
What do we know about Phase 2 and what it will deliver?
Phase 2 aims to reduce the reporting burden for employees to the multiple government agencies we deal with from time to time.
A streamlining of processes such as providing TFN declarations and lump sum E payments.
Voluntary reporting of items such as child support and garnishees.
If you need advice on your transition to STP Phase 2 we can help you navigate through the process.
If you need advice on how to review transactions and the changes that will affect you we can help.