Single Touch Payroll is expanding to include additional information from 1 January 2022. We’re regularly being asked what this means to employers.
In short, STP2 is designed to reduce the reporting burden on employers, who are often reporting across multiple agencies. It’s also intended to help Services Australia (Centrelink) customers, such as your employees, get paid correctly from this Agency.
Many online service providers, such as Xero or MYOB, are aware of these incoming changes and will be set up for your business to be compliant with Phase 2 reporting from the required date.
Significant changes for employers include:
– No longer needing to submit Tax File Number Declarations. You will still need to receive this information, but it will be recorded online in their Employee Records.
– Information will be shared with Services Australia which will help for confirming employee records and payslips.
– May not need to provide separation certificates when an employee leaves.
– Can volunteer to report Child Support deductions and/or garnishees via STP.
Employees will also benefit from the added simplicity of these new systems. The ATO has provided a thorough Employer Guide to fully inform you of new and existing STP obligations.
For more information on managing Single Touch Payroll obligations in your business, please contact us ASAP.
At VBA we specialise in strategic tax advice, offering tax and financial reporting for individual income earners, family businesses, tradies and construction companies.
Victor Bimrose Accountancy Pty Ltd (ASIC No. 1259423) ABN 53 010 957 294 is a Corporate Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361.
Mark Foxley-Conolly (ASIC No. 1259421) is a Limited Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361
General Advice Warning: This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.