Reporting through Single Touch Payroll (STP) is mandatory for all employers, irrespective of their number of employees, unless they have received an exemption or deferral from the Australian Taxation Office (ATO). STP Phase 2 will commence from 1 January 2022 and is designed to:
- reduce the reporting burden for employers who need to report information about their employees to multiple government agencies, and
- support the administration of the social security system through the collection of additional information.
An ATO factsheet describing the main changes to be implemented under STP Phase 2 is available here.
Payroll accounting software providers (known as digital service providers) are in the process of updating their software to meet the STP Phase 2 standards. To prepare for the transition to STP Phase 2, now is a good time for early childhood education and care services to consider:
- confirming that they are currently correctly reporting payroll information to the ATO through STP Phase 1-enabled software,
- ensuring that they have a current subscription to their payroll accounting software so that they are automatically transitioned to their digital service provider’s STP Phase 2-enabled software prior to 1 January 2022,
- reviewing the STP Phase 2 employer reporting guidelines available on the ATO website, and
- scheduling resources, especially time and wages, to complete the necessary changes to their payroll reporting structure as advised by their digital service provider in the leadup to 1 January 2022.
CCSA Business Solutions payroll clients will have their STP Phase 2 obligations met as part of their subscription. For more information on CCSA Business Solutions, phone 1800 991 602 and select Option 3 or go here to find out more.
This post expires on Friday December 31st, 2021