Single touch payroll (STP) is the instantaneous reporting of information to the Australian Taxation Office each time a payroll is processed by a business.
STP became a mandatory obligation for all businesses that withhold Pay As You Go (PAYG) contributions for employees or contractors in July 2019.
Phase 2 is a continuation of STP and remains mandatory.
The Expanded STP Phase 2 started on 1 January 2022.
Many of the Major Accounting Software providers have been provided with a deferral of this reporting until 31 December 2022.
What’s New with the Expanded Phase 2?
The STP Phase 2 report includes extra fields to allow for more detailed payroll information. The additional details enable the data to be reported to multiple government agencies using standard payroll categories.
- Automated Tax File Number Declarations to the Australian Taxation Office
- Streamlined reporting between agencies such as Centrelink, Child Support and Medicare with the Australian Taxation Office
What do you need to do to become STP Phase 2 Compliant?
- Stay Informed
- Review All Pay Items
- Review Employees
