SINGLE TOUCH PAYROLL (STP) PHASE 2 REPORTING

Dear all,

 

STP is a way to communicate your employer's tax and superannuation information to the ATO in a timely manner. Phase 2 provides additional information that will be used by the ATO and Services Australia.

 

Tax file number (TFN) declaration:

STP 2 will eliminate the need to submit a TFN declaration form for new employees.

Employee Separation Certificates:

These certificates are no longer required, as the reason why an employee has left the business will now be provided via STP reports.

Lump Sum E payments (Back pay):

Previously, if an employer makes a payment owing from previous years a Lump Sum E letter would need to be provided to the employee. This information must now be included in Phase 2 reporting, with details of the payment appearing in the employee’s income statement.

Child Support:

Businesses will have the option to include child support garnishees and deductions in their STP report, reducing the need to provide separate advice to the Child Support Registrar.

Employment Type:

Reporting of employment type will now be mandatory. You will need to declare whether your employees are full-time, part-time or cause, in addition to new categories such as labour hire or volunteer.

Disaggregation of Gross:

Income will no longer be reported as a gross sum, instead each component must be itemised including salary sacrifice, overtime, paid leave, bonuses, commissions, director’s fees and allowances (allowances must also be individually itemised).

Country Codes:

If you have Australian resident employees working overseas, businesses will need to provide details of the host country.

We have provided the below hyperlinks to each Payroll Software's STP Phase 2 Hub for more information and further assistance.

XERO

https://www.xero.com/au/programme/single-touch-payroll/stp-2/

MYOB

https://www.myob.com/au/comms/accountants-partners/stp-phase-2

RECKON

https://www.reckon.com/au/single-touch-payroll-phase-2-hub/

QUICKBOOKS

 

If you are using Xero's payroll software you have until 31 March 2023 to move to STP Phase 2. Please check your payroll system for the due date if you are using MYOB, Reckon or Quickbooks.

 

If you have already set up your Payroll Software for STP Phase 2 reporting, then there is nothing further to do.

 

Otherwise, please advise if you require any assistance setting up your STP Phase 2 reporting and we can organise a quote for our estimated time.

 

If you have any further questions please do not hesitate to contact our office.