Single Touch Payroll Phase 2 Postponed
- Published: March 25, 2021
- Author: Asparq
All employers have to report payments made to employees and closely held payees to the ATO using Single Touch Payroll reporting from July 2021.
Single Touch Payroll (STP) Phase 2 was initially planned for 1 July 2021 to align with the mandatory reporting for all employers, but it has been postponed to 1 January 2022.
The planned STP expansion has been extended because of COVID-19 impacts on business and accounting and payroll software providers.
STP Phase 2 will require additional information to be reported with each STP pay event.
Accounting and payroll software products will be upgraded to include broader reporting parameters and categories in line with the ATO requirements for Phase 2.
The Phase 2 expansion will allow employers to report information to multiple government agencies in the STP report. Standardised categorisation of income components will make it easier for employees to interact with Services Australia.
The changes will also include detailed income types, lump-sum payments, itemised allowances, child support and the ability to lodge tax file number declarations from within STP reporting. Employment separation certificates upon the termination of employment will no longer be needed, as Phase 2 reporting will include the reason an employee ceased employment.
If you’d like to review your payroll software and systems before STP Phase 2 starts, talk to us today. Otherwise, there is nothing you need to change right now – we’ll keep you updated when the implementation is closer.
The information contained herein is of a general nature only and is not intended to be relied upon nor is it a substitute for appropriate professional advice. Whilst all care has been taken in the preparation of the material, it is not guaranteed to be accurate. Individual circumstances are different and as such require specific examination. Asparq cannot accept liability for any loss or damage of any kind arising out of the use of or reliance upon all or any part of this material. Additional information may be made available upon request.