STP Phase 2:
Information for Reckon customers

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 12-month deferral for all our customers and partners to start STP Phase 2 reporting from 1 January 2023.

While the deferral gives you more time, it’s still important to be across these new requirements, so we’ve provided some information below.

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, child support deductions, 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.

Why is STP Phase 2 reporting being introduced?

This extended capturing by the ATO will be shared more widely with relevant government bodies such as Centrelink, combining some reporting burdens for employers and further assisting the administration component for social services.

When do I need to be STP Phase 2 compliant?

The official start for the STP Phase 2 is 1 January 2022, however, Reckon has secured a deferral with the ATO until 1 January 2023. This means you won’t have to comply with the STP Phase 2 requirements from this coming January.

The deferral applies to all our payroll products including Reckon One, Reckon Payroll App, Reckon Accounts Hosted, Reckon Accounts and Payroll Premier.

Why did Reckon secure a deferral?

We’ve worked closely with the ATO throughout the whole implementation of STP and believe the deferral is in the best interests of our customers. The last 18 months have been hard on Australian business owners and preparing for the expanded reporting is not a priority for many businesses and their advisers still feeling the effects of the pandemic and lockdown periods.

What does my business need to do?

You won’t need to do anything! Just keep managing your payroll as you currently are under STP Phase 1. As a Reckon customer, you will automatically be covered by our deferral. You don’t need to apply for anything as a business owner.

If you are contacted by ATO about your transition to STP Phase 2 simply provide them with our Deferral Reference Number: 85 627 150 which applies to all our Reckon Payroll products.

How will Reckon Partners be affected?

The deferrals also apply to the Reckon Partner network. We’ll keep you updated on the rollout of STP Phase 2 into our products so you’re able to best support your clients through the transition.

What’s next?

Reckon is working closely with the ATO to update our payroll solutions to enable STP Phase 2 information and make the entire process as simple as possible. You’ll be notified as soon as our products are ready to support the new reporting requirements. In the meantime, we’ll continue to provide our customers and partners with information and educational content to guide you through the transition.

Last updated 5/11/21

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