Single Touch Payroll – Phase 2 (Deferment for Xero Customers ended 31st March)
The Xero deferment has now ended and STP Phase 2 is now compulsory for all small business. Below we have outlined its importance and what this update means for employers and employees.
The purpose of STP is to lessen the burden of administrative reporting on employers and to create an even more efficient process for managing employee payroll data, whilst adhering to strict government guidelines.
Below are a list of dot points on what the Australian Government requires, and the benefits employers will see. (The Crucial deadline for STP phase 2 was 31st March 2023 – with no further Extensions)
All employers will need to provide additional payroll information from their systems to the ATO and where applicable, that information will be provided to Services Australia.
For employers:
• You will receive a single streamlined system that aligns your Fair Work obligations with ATO reporting and now Services Australia reporting, from within your payroll systems.
• The TFN Declaration that must still be obtained from new employees will now be submitted to the ATO through the software (previously a separate process).
• An Employee Separation Certificate that currently must be provided to each employee that leaves the business will now be automatically provided through your payroll system.
• Where applicable, Child Support reporting obligations of the employer may be reported from your payroll system, currently a completely different calculation and submission process.
• Services Australia will now receive Income Details of employees removing, in most cases, any need for further information from the employer.
In order to implement the required STP2 reporting your payroll system will require review and adaption of the following:
• Ensuring all required Employee details are in the software which includes new information such as income type, employment basis.
• Enabling the appropriate additional reporting codes.
• Mapping new codes and remapping existing codes to align the software with the ATO required codes.
• Ensuring that the payroll administration process of your business ensures we capture all the necessary information at any change.
At Tashly Consulting we have this process as part of our suite of services available to our clients.
We have the training, resources, and support to ensure an efficient implementation of this new system.
The process to transition to the new reporting requirements must be performed in conjunction with the release of the STP2 enabled features of your payroll software.
At the time of implementing STP2 for you will also need you to provide communication to your employees of this change.
We offer Bookkeeping Rescue Packages if you need help tidying up your records or have fallen behind in your obligations. We also offer Xero training if you would prefer to keep your bookkeeping in-house but need help getting started or would like to train up a Xero skilled staff member.
Tashly Consulting Xero Bookkeepers Adelaide are Registered BAS Agents #86318001, and we are dedicated to providing seamless, high-quality, transparent bookkeeping services – If you would like any further information please contact us via telephone (08) 8121 4424 or via email to discover how the multi-award-winning team at Tashly Consulting can help you better manage your business bookkeeping – If you would like any further information please contact us via telephone (08) 8121 4424 or via email.
Tashly Consulting Xero Bookkeepers Adelaide – Not your average Bean Counter!
Disclaimer: All or any advice contained in this blog/newsletter is of a general nature only & may not apply to your individual business circumstances. For specific advice relating to your specific situation, please contact your accountant or other professional adviser for further discussion.
Images by Xero | Edited by @tashlydesign