Single Touch Payroll
Most businesses are already reporting payroll information to the ATO under Single Touch Payroll Phase 1. In the 2019-20 Budget, the government announced that Single Touch Payroll (STP) would be exanded to include additional information.
The start date for Phase 2 reporting was 1 January 2022, however some Digital Service Providers (ie Accounting Software providers like XERO) have been granted deferrals.
We have noticed that the ATO have started sending emails directly to businesses regarding STP Phase 2 so we have summarised some of the key points that all businesses should be aware of.
Read on for further details regarding:
What isn't changing?
Key changes
Am I eligible for a deferral?
What isn't changing?
While you will need to report additional information, there are many things that will stay the same, such as:
The way you lodge
The due date
The types of payments that are needed
Tax and super obligations
End of year finalisation requirements
Key changes
Most of the additional information you need to report should be captured in your current payroll software.
The key changes to the STP report include:
Further breakdown of gross payments
Employment and taxation conditions including employment basis and reasons for leaving
Expanded detail for Income types
Country codes for Australian residents working overseas
Child support garnishees and child support deductions reducing the need for separate reporting to the Child Support Registrar
Other changes to reduce and fix issues with duplicate income statements for employees
What's next?
Reporting under STP Phase 2 depends on the accounting software provider your business uses.
STP Phase 2 is available on Quickbooks Online and the ATO now expects businesses who use this software to have started reporting the additional information.
If your business uses Xero or MYOB, the ATO has granted a deferral until 31 December 2022.
Below are links to 3 of the more popular accounting software providers for further details on how and when they are implementing STP Phase 2.
If your business pays payroll through a different software provider than those listed above, please check with them on whether they are STP Phase 2 ready.