STP Phase 2 In A Nutshell
As STP Phase 2 approaches, we’re here to provide an update on how Reckon is managing the new requirements.
We’re working closely with the ATO and have secured a deferral for all our customers and partners to start STP Phase 2 reporting from 30 June 2023. While the deferral gives you more time, it’s still important to be across these new requirements.
Single Touch Payroll (STP) Phase 2 is rounding the corner and every business, great and small, that employs staff will be required to get on board with the expanded program. STP Phase 2 requires additional information to be reported to the ATO, enabling other government agencies to leverage the STP infrastructure to receive information and support the administration of the social security system.
When STP Phase 2 reporting comes into effect on 1 January 2022, there’ll be a more expanded capturing and sharing of payroll and employee data as compared to the original rollout of Phase 1.
This extended capturing by the ATO will be shared more widely with relevant government bodies – such as social services – and will fill certain gaps in payroll information sharing that wasn’t previously being transmitted. This new data remit will remain an automated process, handled through STP compliant payroll software such as cloud accounting apps and payroll systems.
What is STP Phase 2 reporting?
STP Phase 1 required payroll and employee data to be sent directly to the ATO every time you processed a pay run. Under STP phase 2 you will be required to report additional information to the ATO including cessation details, salary sacrifices and more.
You will also be required to separately itemise the components which make up the gross amount and report all allowances separately, not just expense allowances that may have been deductible on your employee’s individual income tax return. These new requirements will remain an automated process, handled through your STP compliant Reckon software.
Check out the STP phase 2 changes >