Single Touch Payroll Phase 2 Hub
Your complete guide to Single Touch Payroll Phase 2.
What is STP Phase 2?
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.
STP2 in a nutshell
From itemising the gross amount to country codes, we’ve summarised the key changes your business needs to be across as part of your transition to STP Phase 2.
Why is the ATO rolling out Phase 2?
STP Phase 2 is the next step in the ATO’s journey to consolidate, improve visibility of data and support the delivery of services.
What it means for your business
How STP Phase 2 affects your business will depend on the processes and payroll systems that you have in place as well as the number of employees you have.
Preparing for STP Phase 2
It’s important your business is across STP Phase 2 and documents the changes now, so you can seamlessly switch to STP Phase 2 when it’s available in your software.
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.
You will be required to update your existing payroll employee records with the following new fields employment type, income type, home country and tax scale.
Know how to categorise your earnings types and ensure they are coded correctly.
Review your allowances payroll items and which STP Phase 2 you will need to map them to.
Ensure your leave items are categorised and coded correctly.
Additional data and key things you can expect to change in your STP Phase 2 reporting.
Reckon’s STP Phase 2 Update
You will be notified directly when STP Phase 2 is available in your software. Please see below for a high-level overview.
Reckon Payroll App
STP Phase 2 is available now in the Reckon Payroll App. Please ensure you transition to STP Phase 2 by 30 June 2023.
Reckon Accounts & Hosted
STP Phase 2 will be available in Reckon Accounts & Hosted by mid-late June. We recommend transitioning to STP Phase 2 as soon as your product is ready.
STP Phase 2 will be available in Reckon One by late June to early July. We recommend transitioning to STP Phase 2 as soon as your product is ready.
You can continue using Payroll Premier as you have been, without any disruption into the new financial year under our extended STP Phase 2 deferral until 30 September 2023.
Reckon customers are automatically covered by our STP Phase 2 deferral until 30 September 2023. If you need more time beyond Reckon’s deferral, you can apply for a delayed transition to STP Phase 2 reporting for your individual business via the Online services for business platform. You do not need to apply for your own delayed transition if you can start STP Phase 2 reporting by 30 September 2023. See the ATO website for more information.
Get STP ready today with Reckon
We’ve got ATO compliant solutions to suit any business.