Single Touch Payroll (STP) is a government initiative that requires employers to report their employees’ payroll information to the Australian Taxation Office (ATO) each time they pay their employees. STP Phase 2 is an expansion of the STP initiative that aims to reduce the reporting burden on employers who need to report information about their employees to multiple government agencies.
Reporting
STP Phase 2 will streamline reporting information about employees to government agencies. The expansion of STP, also known as STP Phase 2, will include additional information such as employment type, gross income, and country codes. The changes will also aid the administration of Services Australia.
Deadline
The mandatory start date of STP Phase 2 reporting was 1st January 2022. However, the ATO has taken a flexible approach based on business readiness and individual circumstances. Employers who need more time to transition to STP Phase 2 reporting can apply for a delayed transition through ATO Online services.
