Single Touch Payroll (STP) Phase 2 is being rolled out and while the mandatory start date is 1 January 2022, the changes are now law and impact how organisations report to comply with legislation in the 2021/22 payroll year.
For Pronto Software customers, there is a STP Phase 2 information page on Pronto Plus with further details about changes and how we can assist. The Australian Government has indicated that the intention of STP Phase 2 is to:
- reduce the reporting burden for employers who need to report information about their employees to multiple government agencies
- improve visibility of payroll data to support the administration of the welfare system
What is changing for employers
STP Phase 2 further streamlines the Australia Taxation Office (ATO) employer reporting requirements for payroll and superannuation, including:
- introduction of reporting by income types
- a new tax treatment framework
- new fields to handle tax file number declarations
- new fields for cessation and child support reporting
- the addition of a financial year for Lump Sum E payments
- separate reporting for salary sacrifice and super salary sacrifice
Pronto Xi Payroll application is designed specifically for Australian organisations. Learn how to manage multiple pay runs, accurately process time sheets and leave requests, maintain up-to-date employee records & more.
It may be helpful to review the following information provided by the ATO.