By now as an employer, we expect that you will be well aware of your Single Touch Payroll (STP) reporting requirements. STP Phase 2 will be the next step which will incorporate some changes to your processes.

Your obligation as an employer to begin complying with STP Phase 2 depends largely on your payroll software. If MYOB is your preferred software provider, you will need to implement STP Phase 2 now if you are not already compliant.

If Xero is your preferred software provider, you will need to implement STP Phase 2 by March 2023, although the software is ready for you to get started now.

Please contact your software provider support for the required deadline if you are not using the software listed here.

STP Phase 2 will mean:

• Employers will no longer be required to submit employees’ tax file number (TFN) declarations to the ATO.
• The reporting process will be simpler for closely held payees or inbound assignees.
• Lump sum E-payments will automatically include the required tax information for the relevant employee (employers are no longer required to provide supporting documentation).
• Software changes or changes to your employee’s payroll ID will now be reported via STP.
• The ATO will also share payroll information you report in near real-time with Services Australia.

A quick reference guide for payment types and STP allocations can be found here.

Further information on STP requirements for major software providers can be found on these listed sites:

• Xero
• MYOB AccountRight
• MYOB Essentials
• Quickbooks
• Reckon

If you have questions in relation to the above, or any other matters, please do not hesitate to contact our office on 1300 620 345.