Single Touch Payroll (STP) is how you send your payroll information to the ATO and it’s been around since July 2018. The ATO is expanding STP to include additional information in your payroll reporting. They’re calling this expansion STP Phase 2 and it starts on 1 January 2022.
More information about this change is available through the ATO website.
What do I need to do?
Your current Single Touch Payroll reporting won’t change. But before STP Phase 2 starts, you’ll need to make sure your payroll information meets the new requirements. This includes updating some employee details and checking your ATO reporting categories.
You should check with your bookkeeper or payroll administrator if they will be ready to report from 1 January or whether a deferral has been obtained.
Need more time?
Although many payroll software providers are ready for STP Phase 2, you might not be. Many providers have obtained a deferral from the ATO such as MYOB users have until 1 January 2023 to update their payroll information for STP Phase 2.
What’s NOT changing?
Don’t let the new name worry you—there are many things that won’t change under STP Phase 2, like:
- how and when you lodge your STP reports
- the types of payments you report
- your tax and super obligations
- end of year finalisation.
Want to get a head start?
If you don’t like leaving things to the last minute, you (or your bookkeeper) can start updating some of the details in your payroll software required for STP Phase 2. This will reduce the stress of the transition by updating your information over the next few months.
If you need help getting ready for STP Phase 2, please contact our office for assistance.
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