There are changes to Single Touch Payroll (STP), which involves reporting additional information. This is known as STP Phase 2. The additional information will help Services Australia customers, who may be your employees, get the right payment. It will also reduce the need for you to provide information about your employees to multiple government agencies. You can find out more information here.
STP Phase 2 started on 1 January 2022. Some Digital Service Providers (DSPs) needed more time to update their products and transition their customers. If your DSP has a deferral, this covers you.
It's important you understand which of the following circumstances apply to you:
- your payroll product is ready - it's time for you to start STP Phase 2 reporting now or have a plan in place to transition as soon as possible.
- you are covered by your DSPs deferral - make sure you understand when your product will be ready and that you are ready to start Phase 2 reporting when it has been updated, or no later than the first payday after your DSP deferral expires.
- the product you're using is not being updated to offer STP Phase 2 reporting - your DSP will let you know if they have another product you can use. If not, you'll need to choose a product that offers STP Phase 2 reporting.
- If you're not sure which of these circumstances applies to you, you need to speak with your DSP and/or your tax or BAS professional.
What do you need to do?
You need to start reporting the additional information when your product is ready, so you should start preparing now.
Many DSPs are releasing changes progressively. Your DSP will provide you with instructions and it's important that you follow them.
We have resources to help you to understand the changes and prepare. These include:
- a factsheet outlining the key changes of STP Phase 2 reporting
- a checklist to consider what you need to do
- detailed reporting guidelines which outline the STP Phase 2 reporting requirements.
You can access these and other resources at ato.gov.au/STPresources
If you use ICS NetSuite Payroll
ICS has a blanket referral that covers your business until 1 August 2022. Therefore, this reporting will be enabled from 1 July 2022.
Everything is ready to go in the system, and you do not need to change your current STP reporting process.