Single Touch Payroll (‘STP’) reporting has been expanded with extra reporting obligations for employers.
This expansion, known as ‘STP Phase 2’, means that employers need to start reporting extra information to the ATO each time they run their payroll.
Some digital service providers (‘DSPs’) needed more time to update their products and applied for deferrals, which cover their customers – therefore, when an employer can start Phase 2 reporting depends on when their payroll product is ready.
Employers that have not already started Phase 2 reporting should ask their DSP when their product will be ready (if they don’t already know).
Employers need to be across the changes and get ready to start Phase 2 reporting. This includes:
- checking if changes need to be made to payroll pay codes/categories so they align with Phase 2 requirements
- reviewing allowances employers pay and how they need to be reported in Phase 2
- understanding changes to salary sacrifice reporting
- understanding how to assign an income type to each payment
The ATO is also reminding employers that amounts paid to ‘closely held payees’ should now be reported through STP.
A ‘closely held payee’ is an individual directly related to the entity they receive payments from. For example, family members of a family business, directors or shareholders of a company and beneficiaries of a trust.
There are concessional reporting options for closely held payees reporting which include the following:
- Reporting actual payments on or before the date of payment (along with arm’s length employees)
- Reporting actual payments quarterly
- Reporting a reasonable estimate quarterly
Please contact our team on 03 9708 8801 or email email@example.com if you have any queries in relation to Single Touch Payroll reporting.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.