Businesses now have an extra two months to implement STP Phase 2.
The ATO has announced that employers who start reporting additional payroll details for STP (Single Touch Payroll) Phase 2 by 1 March 2022 will be treated as if they have met its 1 January 2021 deadline.
What is STP Phase 2 – a reminder
STP Phase 2 is designed to streamline both employer and employee ATO reporting obligations and remove the need for manual reporting to other government agencies. STP Phase 2 reporting will require employers to provide additional information, such as a breakdown of gross amounts and income types, to the ATO each payday.
STP Phase 2 was announced in the 2019-20 Budget, and since then, the ATO has been working with accounting software providers to update their STP-enabled software.
Why the delay and how will it be implemented?
Acknowledging the current challenges for workloads and deadlines, they are allowing software providers to request more time to make the necessary changes to support Phase 2. This delay will be passed on to their customers. If your software provider has obtained a deferral, they will let you know.
If your software is STP Phase 2 ready before 1 March 2022, and you are not, then you will need to request a delayed transition application from the ATO.
If you are ready for 1 January
- If your software is STP Phase 2 ready by 1 January 2022, then you should start reporting.
- If your software is ready before 1 March and you start reporting, you will be considered to be reporting on time, and will not need to apply for an extension.
If you need more time
- You can apply for more time beyond your software providers deferral if you are not ready for the transition to STP Phase 2.
- Applications for delayed transition will open from December 2021. Detailed information about how to apply for one is not yet available but should be available soon.
- The ATO has said there won't be penalties for genuine mistakes for the first year of STP Phase 2 reporting until 31 December 2022. This includes employers who have already started STP Phase 2 reporting.
For more information about Single Touch Payroll Phase 2, read our May article, or contact your Aspen Corporate Advisor. Aspen Corporate will advise you of further details about STP Phase 2 as they are released by the ATO.
Thinking outside the box.
Our thinking doesn’t
just deliver value.
It saves you time.
It’s more than just reducing expenses or helping you improve profitability today. It's about fast tracking your success by taking the time to build a shared vision of your best future. Backed with dedicated and unparalleled team industry leading expertise, empowering you with the tools and guidance to make informed decisions, streamline your financial processes, raise the bar on what’s possible and help you achieve your business goals more efficiently.
The most valuable thing to our success is you. The most valuable thing to you is time.
Where knowledge meets
understanding in tax solutions.
With over thirty years of experience, we know that a good business stems from the roots; from our people.
We offer a unique combination of taxation, accounting, financial and advisory services tailored to the individual requirements of your business.
The contents of this website should be read in conjunction with the Terms & Conditions and Privacy Policy.
LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION
Liability Limited by a Scheme Approved under Professional Standards Legislation