The Tax Office has updated its resources to help employers understand the changes and prepare for STP phase 2 reporting.
These include a fact sheet outlining the key differences between STP phase 1 and 2 reporting, and a to-do checklist for employers.
The ATO offers employers detailed guidelines on STP phase 2 reporting requirements along with webinars about the changes featuring industry professionals providing practical examples and suggestions.
These guidelines will help practitioners understand what is required for STP phase 2 reporting through their STP phase 2-enabled software. This will depend on whether the digital service provider has transitioned to STP phase 2 reporting.
The ATO said while STP phase 2 reporting started from 1 January 2022, businesses could only start STP phase 2 reporting when their digital service provider (DSP) updated the payroll product.
This is part of the current roll-out process from various software providers as part of the STP phase 2 transition.
“If your DSP has a deferral, it will cover you,” the ATO said. “They will let you know if they have a deferral, and when it’s time for you to start STP Phase 2 reporting.
“Many DSPs have a deferral in place to get ready and transition their customers.
“When your client’s product is ready, it is important that they do not delay their plans.”
Employers can start preparing now by reviewing the STP phase 2 reporting guidelines along with business and payroll processes.
The ATO said it was crucial that businesses understood the STP phase 2 changes and started preparations to report the additional information along with following the provider’s instructions.
It would be important to consider the client’s required start dates and if they needed more time for the transition process.
“You can apply for an extension if you need more time to transition,” the ATO said. “Your registered tax or BAS professional can also apply on your behalf.”
The updated guidance including the new Expanding Single Touch Payroll (Phase 2) fact sheet and information on the digital service providers’ transition can be found here.
Tony Zhang is a journalist at Accountants Daily, which is the leading source of news, strategy and educational content for professionals working in the accounting sector.
Since joining the Momentum Media team in 2020, Tony has written for a range of its publications including Lawyers Weekly, Adviser Innovation, ifa and SMSF Adviser. He has been full-time on Accountants Daily since September 2021.