With the end of the calendar year approaching at an unbelievable speed, I’m sure your calendar like mine is quickly filling up with important dates. For small businesses, there is an important date approaching that needs your attention now – the deadline for Single Touch Payroll (STP) Phase 2. STP Phase 2 was due to commence on January 1, 2022, but as small business payroll systems weren’t ready it was extended.
What is STP Phase 2?
According to the ATO; In the 2019–20 Budget, the government announced that Single Touch Payroll (STP) would be expanded to include additional information.
The expansion of STP, also known as STP Phase 2, will reduce the reporting burden for employers who need to report information about their employees to multiple government agencies. It will also help Services Australia’s customers, who may be your employees, get the right payment at the right time.
Small business MYOB users, you will need to move quickly as your deadline to be prepared is 31 December 2022. Xero users have a little bit longer with the deadline set at 31 March 2023.
- Small business MYOB users, you will need to run through a six-step process. Depending on your number of staff this may take some time, so please review what needs to be done and ensure you set aside enough time before December 31.
- Xero has developed a four-step process you need to run through.
If you feel you need more time to make the transition, you can apply for an extension with the ATO.
Where to start?
- Discuss STP Phase 2 transition with your Payroll Officer, Payroll Provider and/or Accountant and make a plan for updating employee details to ensure you meet the deadline
- Your Accountant and/or business adviser may be able to assist you
- The ATO has a detailed checklist.
- We can connect you with a Chamber member that will be able to assist.
If you’re a small business that uses MYOB or Xero for payroll, please ensure you have those dates in your diary and allow yourself enough time to be ready for STP Stage 2.
References: This information has been prepared using information provided by the Australian Taxation Office and Platinum Chamber member Synectic Accountants & Advisors.