You may need to make some changes to your payroll software to comply with the new Single Touch Payroll Phase 2 reporting requirements.

What is STP?

Single Touch Payroll (STP) is the new way of reporting payroll data to the ATO. It has been in place for a couple of years now. You should already be lodging or filing each pay event to the ATO within your payroll software.

What is Changing?

When and how you report is not changing. The STP scheme is just being expanded to send extra data to the ATO. The extra information includes:

• More specific details on the type of income you're paying your employees
• The employment basis, TFN declaration details and employment termination details
• Country codes, if you have employees working overseas
• Child support garnishees and deductions
• Prior software IDS, if you change payroll systems during the year

What do you need to do?

Once your software is STP Phase 2 ready, there's a few things you need to check. They are:

• Checking that each pay category has the correct income type
• Checking that each leave category has the correct income type
• Checking that child support deductions have the correct STP code
• Checking that each employee has the correct TFN declaration details, such as their employment basis and start date

When do you need to do it?

That depends on the software you use. STP Phase 2 officially started on 1 January 2022, but not all software is ready yet. Many payroll software providers have deferrals from the ATO, plus the ATO has said they will not take any compliance action before 1 January 2023.

How do you check your software?

Get the instructions for your payroll solution by clicking on one of the buttons below:

Where can you get more info?

If you need more information about Single Touch Payroll Phase 2 you can see the ATO's Website. If you need individual help from us, please contact us.

Want us to do it for you?

If you'd like us to check your pay categories, leave categories, deductions and employees, you can use the form below to request a proposal. Keep in mind that the cost of such work will be based on the number of categories and employees in your file, and that we can't undertake such work until your particular software is STP Phase 2 enabled.