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STP Phase 2 Reporting Extended

Modoras
Published by:
Annette Harden
Published on:
December 09, 2021
Modoras Accounting (QLD) Pty Ltd ABN 81 601 145 215
STP Phase 2 Reporting Extended

STP Phase 2 reporting deadline is fast approaching. If you’re worried your business won’t be able to start its Single Touch Payroll (STP) Phase 2 reporting by the deadline on 1 January 2022, there’s good news.

The Australian Taxation Office (ATO) has taken a flexible approach based on business owners’ readiness and individual circumstances. The ATO acknowledged that the introduction of Single Touch Payroll Phase 2 may come at a busy time for employers and their tax agents.

STP Phase 2 is an expansion of the payroll data the ATO collects from employers. It requires software providers to update employers’ existing STP-enabled software.

The ATO says that, because employers are reliant on these providers to be able to start reporting, it’ll be taking a “fair and flexible approach during the roll-out”.

“The first step,” says Commissioner of Taxation Chris Jordan, “is to check whether [the employer’s] software provider has been given a deferral [by the ATO].

“If the software is ready to go by 1 January, then as long as [the employer] can start reporting by 1 March 2022, they will be considered to have started on time and don’t need to apply for a deferral.

“If a software provider has been granted extra time, this will apply to their customers as well.

“Employers can apply for individual deferrals from December this year. We will be flexible and reasonable with the transition.”

Benefits of STP Phase 2

STP Phase 2 will reduce the reporting burden for employers who need to report information about their employees to multiple government agencies.

It’ll also help streamline welfare services (e.g., child support, family tax benefit).

More exactly, STP Phase 2 will:

  • reduce the duplication of information employers provide to the government, which in turn will reduce unnecessary interactions,
  • remove the need to send tax file number and withholding declaration information to the ATO,
  • better define the components that make up gross income, and
  • report employee payments by income type (or income streams).

STP Phase 2 is a big move towards an easier complete digital recording and reporting. Reviewing the STP Phase 2 reporting guidelines may help understand what is required and what you need to do to get ready on or before 1 March 2022.

Get expert advice

If you’ve only just gotten your head around STP reporting and aren’t sure how to deal with Phase 2, we can help.

As registered tax agents, we can process and report your payroll information for you and, if necessary, apply for an STP Phase 2 deferral on your behalf.

You can download our Single Touch Payroll Quick Guide and contact us for a complimentary consultation at info@modoras.com or 1300 888 803. We’ll take care of you.

IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (QLD) Pty. Ltd. ABN 81 601 145 215. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (QLD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (QLD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (QLD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (QLD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.

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