STP Phase 2 Changes
Single Touch Payroll Phase 2 reporting requirements sees your business build on its current STP reporting to provide additional information to the ATO whenever you process a pay run.
STP Phase 2 officially began on 1 Jan 2022 however most businesses are taking advantage of deferrals until 2023. To get ready for STP Phase 2 you need to add, edit or review the information you send to the ATO through your STP-enabled software provider.
STP Phase 2 will involve the capture of the following new fields:
- employment basis
- paid leave
- allowances
- overtime
- cessation details
- salary sacrifice
- lump sums
- country codes
Other key changes
Disaggregation of Gross Income
Employers must now report each component of income rather than the gross sum. This means itemising salary sacrifice, overtime, paid leave, bonuses, commissions, director’s fees and allowances.
Additional employee details
Update employee profiles to include new information on Income Stream code, Employment Type, Home Country and Tax treatment codes.
Benefits
- Some reporting requirements across multiple Government agencies are now consolidated e.g child support reporting
- Improve visibility and support the delivery of social welfare
- Remove the need for employment separation certificates
- Remove the requirement to send employee TFN declarations to the ATO
- Employee tax return deductions and returns are easier to complete
The following will not change in the roll-out of STP Phase 2:
- the way you report Single Touch Payroll
- the date you report Single Touch Payroll (on or before pay day)
- the types of employee payments that are required for Single Touch Payroll reporting
- your current taxation and superannuation duties
- end of year finalisation requirements and submission responsibilities