Everything you need to know about Single Touch Payroll Phase 2
The final part of Phase 1 of the ATO’s Single Touch Payroll (STP) Reporting requirements came into effect from 1 July 2021. Now we are getting ready for Phase 2.
Phase 1 was a way of reporting employees’ tax and super to the ATO in real time. Phase 2 will expand this program to capture even more information.
Here is what it means for your business:
- Reduces the compliance burden for employers
- Streamlines employer interactions with the ATO
- Helps admin for social support services
The way you submit STP won’t change – the impact of STP Phase 2 will depend on the qualities of your business and employees.
Here are some of the reporting functions that will be impacted by STP Phase 2:
- Tax file number declarations
- Termination reasons being provided to the ATO
- Employee work types
- Income stream collection
- Salary sacrificing
- Lump sum E payments
The official start for STP Phase 2 reporting is 1 January 2022, however Xero partners and customers will be covered by a deferral until 31 December 2022. During this period, Xero (and other providers) will be working to ensure that the relevant information can be easily sent along with each STP event.
You can find more information on the ATO’s website.
Should you need any assistance with your STP reporting options, please contact us.