03/11/2021
SINGLE TOUCH PAYROLL - Are you ready for Phase 2?
STP2 - ATO Adopts Gently-Gently Approach
The expansion of Single Touch Payroll (known as STP Phase 2)
is scheduled to commence on 1 January 2022 and will require
employers to report additional payroll information in their STP
reports. For example, disaggregation of gross amounts (including
separate reporting of paid leave, allowances, overtime, directors’
fees and salary sacrifice amounts), employment and taxation
conditions (including information from the TFN declaration) and
income types (for example, salary and wages, working holiday
maker income, or foreign employment income).
STP Phase 2 will also involve sharing information with Services
Australia. To help support employers with the transition to STP
Phase 2, the ATO has advised it is adopting a flexible, reasonable
and pragmatic approach as follows:
• Employers that can start reporting by their digital service
provider’s (‘DSP’) deferral date (if applicable) do not need
to apply for more time.
• Employers should start STP Phase 2 reporting if their software will be ready for 1 January 2022. If an employer’s software is ready and they are able to start reporting before 1 March 2022, they do not need to apply for more time (that is, an automatic two-month extension applies).
From December 2021, employers can apply for more time past their
DSP's deferral date, if they need more time to transition.
The ATO has also advised there will not be penalties for genuine
mistakes for the first year of Phase 2 reporting until 31 December
2022.
Contact Guardian Angels - Bookkeeping if you need support.
Phone: 0418-400-449
Email: [email protected]
