When it was first rolled out in July 2018, Single Touch Payroll (STP) dramatically changed the way Australian businesses reported their payroll.
For most, ensuring STP-compliant payroll reporting is now a familiar process. So it may be easy to forget just how much effort was required for businesses – and their payroll software vendors – to transition to STP reporting when it was first launched.
Businesses had to work tirelessly to ensure that they not only had the processes in place to meet STP’s obligations, but that their payroll software was STP-compliant. For software vendors, the road to having their solutions certified as STP-compliant was a long one, requiring significant time and effort.
STP Phase 2, which is slated to launch on 1 July 2021, is already promising to be much more complex in reporting than Phase 1. Businesses and software vendors are facing an even greater challenge than that posed by STP’s initial roll-out.
eBook: Guide to payroll compliance 2021
Download our ebook to get up to speed on the 3 biggest compliance obligations facing Australian businesses in the coming year. You'll also learn 5 tips to help stay on top of ever-changing compliance obligations.
STP Phase 2 reporting requirements – what we know so far
With the ATO’s focus having shifted to the JobKeeper scheme since the COVID-19 outbreak, they have unfortunately provided minimal information on the exact requirements of STP Phase 2.
However, what we do know is that businesses will be required to provide a far greater amount of granular data with every pay run. As of writing, this will include a disaggregation of gross income for every employee, as well as data related to allowances.
For both businesses and their software vendors, making the changes necessary to provide such data will inevitably be a monumental task. It will require software vendors to make even greater changes to their solutions than what was required with the initial roll-out of STP.
It’s therefore critical that you have a payroll software vendor you can trust – one who has proven experience in the Australian market and is confident that their software will be compliant by 1 July 2021.
Sage is the leader in STP compliance
At Sage, we understand the pressure that is on businesses and payroll professionals to stay on top of Australia’s ever-evolving compliance requirements.
When STP was first rolled out in 2018, Sage was one of the first software vendors to have its payroll solutions certified as STP-compliant by the ATO.
We’re currently part of the ATO’s STP Phase 2 working group and have a proven track-record with delivering accurate and compliant payroll software for over 25 years.
If you’re looking for a software vendor who you can trust to stay on top of STP Phase 2 compliance, you may want to consider Sage. Our Australia-based team has the demonstrated capability and experience required to ensure all our customers will be compliant with STP Phase 2.
Subscribe to The Access Group newsletter
Effective 1 June 2021, Sage’s accountant and payroll solutions in Australia will be sold to The Access Group. If you would like to continue to receive valuable content such as this to optimise your practice or business, please subscribe to The Access Group newsletter.