STP

What is Single Touch Payroll Services (STP) Phase 2?

Most Australian employers are familiar with Single Touch Payroll. STP Phase 2 is the next stop on this journey. Where phase one was a way of reporting employees’ tax and super to the ATO, STP Phase 2 expands the program to capture more detailed information. This will reduce the compliance burden for employers and individuals, and help the admin side of things for Services Australia.

Although you need to provide the ATO with more information, the way you submit STP reports won’t change; how much it differs from your current process will depend on the nuances of your unique business and employees.

Read More: HR And Payroll Outsourcing Benefits

If you are using common software such as XERO or Employment Hero to manage your payroll, you will see three stages of change to your reporting requirements going live this year.