You can also find this information on the ATO website, link below:
The Government announced the Single Touch Payroll in the 2019-20 budget and at that time, they did say there would be an expansion of STP, known as STP Phase 2.
What this will do, is reduce the reporting burden for employers who need to report information about their employees to multiple government agencies.
I would think that is a sign of relief for many employers.
The mandatory start date for Phase 2 reporting starts 1st January 2022.
The ATO have notified that Digital Service Providers (DSP’s) who may need more time to make the changes and update their solutions to support STP 2 can apply for a referral for their customers.
So there is a flexible approach to this transition, therefore if your solution is ready for 1 January 2022, you should start Phase 2 reporting. If your solution is ready and you can start Phase 2 reporting before 1 March 2022, then you will be considered to be reporting on time and you won’t need to apply for more time.
You can also apply for a delayed transition from December 2021. There will not be any penalties for genuine mistakes for the first year of Phase 2 reporting until 31 December 2022. This includes employers who have already started Phase 2 reporting.
The benefits for employers are you will no longer have to send the ATO the employee’s TFN declarations. The employees will provide it to you and you will need to keep it with your employee records.
‘If you make a Lump Sum E payment, you won’t need to provide Lump Sum E letters to your employees. You’ll have included the amount and the period it relates to.
If you change software or your employee’s payroll ID, you can tell us in your STP report if your solution has this functionality. This will help fix issues with duplicate income statements for employees in ATO online services through myGov
You may no longer need to provide separation certificates when your employees leave. The date and reason an employee leaves will be in your STP report.
You can also voluntarily report child support deductions and/or garnishees through STP. This reduces the need to send separate remittance advices to the Child Support Registrar’
If this sounds all too confusing, then give me a call on 0429 363 047, I can take care of this for you and so much more.
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID