In less than a month, on 1 January 2022, Single Touch Payroll (STP) Phase 2 (STP2) will come into effect and require employers to collate additional information to meet new government reporting standards to remain STP compliant and avoid penalties.
All businesses will need to make payroll changes and there could be significant work involved for your bookkeeper or payroll staff.
1. Start early. Implement the changes in your software for STP2 updates for the transition. View our How to Guide here.
2. Talk to your staff. Ensure your bookkeeper and payroll staff so they know the data requirements for STP2. Speak to your employees early so they know what additional information you may require from them.
3. Contact your advisor early. Contact us if you have any questions or to discuss applying for a deferral. With the office Christmas closure period looming you will need to allow ample time to implement changes before the 1 January 2022 deadline (noting the relevant deferrals below).
Deferral dates for Xero and MYOB
Xero and MYOB users have a deferred deadline to start reporting the additional information required:
Xero – until 31 December 2022
MYOB – until 1 January 2023
What your bookkeeper or payroll staff need to know
STP2 will streamline reporting obligations and you will no longer need to manually report to multiple government agencies. Employers will be required to report additional information through STP on or before each payday.
Payroll reporting classifications
The ATO has expanded payroll reporting classifications and introduced “identifiers”. View the main expanded categories in this infographic.
Currently the specifics of STP2 have not been released by the ATO but we will keep you up-to-date or alternatively, contact your Pilot advisor to ensure you are ready.