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Changes to single touch payroll reporting: ATO

The ATO has urged businesses to be aware of changes to STP reporting and how they may impact the payroll process as the new expansion is now in place.

Changes to single touch payroll reporting: ATO
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Single touch payroll (STP) reporting has been expanded. This expansion is known as STP phase 2. 

The ATO said if you have employees, you will need to start reporting extra information to us each time you run your payroll.

“Some digital service providers needed more time to update their products and have applied for deferrals, which cover their customers. This means that when you can start Phase 2 reporting depends on when your payroll product is ready,” the ATO said.

“If you haven’t already started Phase 2 reporting, make sure you ask your provider when their product will be ready if you don’t already know.”

As an employer, the ATO said it was important that employers are across the changes required, and businesses are getting ready to start phase 2 reporting. 

“This includes checking if you need to make changes to payroll pay codes/categories so they align with Phase 2 requirements and reviewing allowances you pay and how they need to be reported in Phase 2,” the ATO said.

“Businesses need to understand changes to salary sacrifice reporting and understand how to assign an income type to each payment.”

The ATO said amounts paid to closely held payees should now be reported through STP. 

There are concessional reporting options for closely held payees reporting that include reporting actual payments on or before the date of payment (along with your arm’s length employees).

It also includes reporting actual payments quarterly and reporting a reasonable estimate quarterly.

“We have resources to help you understand the changes,” the ATO said.

“You can also seek the advice of your tax or BAS professional or payroll provider.”

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