Single Touch Payroll Phase 2, are you ready?
In the 2019-20 Budget the government announced that Single Touch Payroll (STP) will be expanded to include additional reported payroll information. The Expansion of this STP is also know as “STP Phase 2”, designed to reduce the reporting burden for employers who need to report payroll information to multiple government agencies.
The Main Payroll Reporting Changes Are;
· Tax File Number Declaration
· Income Type and Country Codes
· Termination Reason
· Paid Leave
· Allowance Types
· Director Fees
· Lump Sum W (Return to Work) Payments
· Tax Treatment Codes
· Bonuses and Commissions
· Lump Sum E Payments
Although you need to provide the ATO with more payroll information, the way you submit your STP Phase 2 Reporting will not change.
To ensure that your payroll records are STP Phase 2 compliant your digital software provider will issue step by step process on how to complete this initial setup to assign these new payroll categorises and update your employee data fields.
These instructions can be found under the STP Reporting Section (STP Phase 2) or the Help Menu Area in your Payroll Software.
The STP Phase 2 compliant deadline date with the ATO is 31 March 2023, for any further assistance regarding “STP Phase 2” please contact us at Coggergurry to step you through this transition.
