Single Touch Payroll (STP) Phase 2 Employer Reporting Guidelines
Under Single Touch Payroll Phase 2, the Australian Government will require all employers to report additional information to the ATO through STP on or before each payday.
This is available to implement now with your payroll software provider. It is important to know that these are NEW reporting obligations which require manual changes to be made within your payroll set up.
The main changes are under the following categories:
- Tax file number declaration
- Income type and country codes
- Termination reason
- Paid leave
- Allowance types
- Directors fees
- Lump Sum W (Return to work) payments
- Tax treatment codes
- Bonuses and commissions
- Lump Sum E payments
To assist you with your implementation, see below helpful guides and resources to reference. We strongly recommend you use this information to make your manual upgrades if you have not done so already.
Australian Tax Office Resources
Expanding Single Touch Payroll Phase 2 Expanding Single Touch Payroll (Phase 2) | Australian Taxation Office (ato.gov.au)
Expanding Single Touch Payroll Phase 2 EMPLOYERS Fact Sheet Expanding Single Touch Payroll (Phase 2) (ato.gov.au)
Phase 2 Reporting Quick Reference Guide STP Phase 2 reporting – Quick reference guide | Australian Taxation Office (ato.gov.au)
MYOB Customers
All customers reporting STP using MYOB, the deadline for Phase 2 implementation is 1 January 2023.
MYOB Customers Getting Ready for STP Phase 2 Getting ready for STP Phase 2 | MYOB Australia
MYOB Training & Resources – Online guided courses, Webinars and links STP Phase 2 Resources and Training | MYOB Australia
If you still require assistance or would like to engage our team to implement these changes on your behalf, please be in touch to discuss.
The AGS Accounting Office will be closing for the Christmas Break on Wednesday 21st December 2022.
For MYOB customers, please contact us by 5pm this Friday 16th December 2022 to coordinate assistance for before our closure period to ensure you are transitioned before the 1st January 2023 deadline.
Xero Customers
All customers reporting STP using Xero Payroll have until 31 March 2023 to report their first STP Phase 2 pay run.
How STP Phase 2 affects your Business
https://central.xero.com/s/article/About-Single-Touch-Payroll-Phase-2#HowSTPPhase2affectsyourbusiness
STP Phase 2 Resource Hub – The key information you need to transition to Single Touch Payroll (STP) Phase 2 in Xero.
STP Phase 2 Resource Hub | Xero AU
STP Phase 2 Transition Guide
Move to Single Touch Payroll Phase 2.pdf
STP Phase 2 Live Resources
Single Touch Payroll Phase 2 – Xero Central
If you still require assistance or would like to engage our team to implement these changes on your behalf, please be in touch to discuss.
The AGS Accounting Office will be closing for the Christmas Break on Wednesday 21st December 2022.
For Xero Customers, you have until 31st March 2023 so we can work through this with you early in the new year.
Other Software Providers
Please contact your AGS Accountant to check if you’re not sure when you have to start using STP Phase 2.
Please also talk to us if you’d like to review your payroll software and systems before upgrading to STP Phase 2. We can provide guidance for this transition.