What is Single Touch Payroll Phase 2?
Nearing the end of 2019, ATO announced the expansion of the Single Touch Payroll (STP) and released additional information about it.
Employers who must report information about their workers to various government agencies will benefit from this STP extension (also known as STP Phase 2). It also aids in the management of the social security system.
The date for STP phase 2 ATO reporting will be from 1 January 2022.
What is new and changing?
ATO is collaborating closely with digital service providers to ensure that their STP-enabled software is according to the latest updates.
It’s important to note that all STP-enabled solutions have different features, and expansion updates can be provided in a variety of ways. Other than an electronic submission of employees, it has many new changes in it. What you’ll need to do to get started will be determined by the product you’re using and how you handle payroll.
Here are the highlights of a few changes that you might need to know:
- Employment conditions: You will no longer need to submit Tax File Number (TFN) Declarations to the government because of the additional details you will provide in your STP survey.
- Income Type and Country Code: The income types and country codes reporting system is being established to help you distinguish payments you make to your workers with unique tax implications. Further, it makes it easier for them to complete their individual income tax returns.
- Disaggregation of Gross: Allowances that were formerly reported as the net will now be marked up and reported separately.
There are more changes to the other functions too that are following. You can check the details from the government website now.
- Salary Sacrifice
- Lump Sums
- Reporting previous Business Management Software IDs and Payroll IDs
- Child Support Garnishees and Child Support Deductions.
What’s isn’t changing
Although you will be required to report additional details in your STP report, several aspects will remain the same, including:
- How You Send Your STP Report
- If You Qualify For A Reporting Concession, STP Reports Are Still Due On Or Before Pay Day.
- The Types of Payments That Must Be Recorded Under STP.
- Obligations In Terms Of Taxes and Superannuation.
- Finalization Conditions At The End Of The Year
How can DHRP fit?
DHRP Payroll’s solution in Dynamics 365 will ensure your Single Touch payroll is ready to serve you. If you need to implement it to current clients free of charge as changes occur in the STP phase 2. Talk to us now so that we can provide Single Touch integration in Dynamics 365 Payroll to you. Our experts can also help you with the further STP employer reporting guidelines as per your needs.
