Changes to Single Touch Payroll reporting

 

Single Touch Payroll (STP) reporting has been expanded. This expansion is known as STP Phase 2. If you have employees, you will need to start reporting extra information to us each time you run your payroll.

Some digital service providers needed more time to update their products and have applied for deferrals, which cover their customers. This means that when you can start Phase 2 reporting depends on when your payroll product is ready. If you haven’t already started Phase 2 reporting, make sure you ask your provider when their product will be ready if you don’t already know.

As an employer, it’s important that you’re across the changes required, and you’re getting ready to start Phase 2 reporting. This includes:

  • checking if you need to make changes to payroll pay codes/categories so they align with Phase 2 requirements
  • reviewing allowances you pay and how they need to be reported in Phase 2
  • understanding changes to salary sacrifice reporting
  • understanding how to assign an income type to each payment.

Amounts paid to closely held payees should now be reported through STP. There are concessional reporting options for closely held payees reporting which include:

  • reporting actual payments on or before the date of payment (along with your arm’s length employees)
  • reporting actual payments quarterly
  • reporting a reasonable estimate quarterly.

We have resources to help you understand the changes. You can also seek advice from our BAS professional or payroll provider.

 

Source: ATO

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About the Author: David McKeller

David McKellar is a Chartered Accountant and Director of Allied Business Accountants, an accounting firm specialising in providing strategic advice and taxation services to business owners, investors and Self Managed Superannuation Funds.

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