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Single Touch Payroll (STP) Phase 2

Be prepared with a comprehensive set of resources designed to simplify and streamline your STP compliance journey.

Our promise to you

Sage continues to work closely with the Australian Taxation Office to ensure we remain up-to-date with the requirements and intentions for STP Phase 2 Reporting. As an Australian market leader in payroll solutions for over 25 years, we’ve put our resources into ensuring we deliver compliant, intuitive and extensible solutions that drive better business outcomes for our customers.

What is Single Touch Payroll (STP) Phase 2?

STP was introduced to support real-time electronic interactions between employers and the ATO. STP Phase 2 sees other government agencies begin to leverage the STP infrastructure and processes as a method of receiving payroll data. 

In this instance Services Australia, will utilise STP to pass additional and more granular information to support the variety of services they deliver. 

How STP Phase 2 impacts you

There is a process for transitioning from STP to STP Phase 2. The first part is to confirm you already have STP compliant software. With 25 years of compliance experience, Sage is committed to ensuring our customers are compliant with the latest regulations.

The second part is reviewing your system holds all the relevant data to support interactions with the ATO and Services Australia. This will involve the desegregation of gross, entering additional data into new fields as well as configuring the system to appropriately manage the required granularity for these new STP Phase 2 reporting requirements.

Rest assured as a Sage payroll customer your system is already STP compliant, this means at this stage you there’s nothing you need to do. Our Sage customer success team will keep you informed as to when your payroll software will be updated to comply with STP Phase 2 and the next steps. Be confident that Sage will walk you through the changes, impact and upgrade process to ensure you are compliant.

We recommend that you take the time now to review your payroll software to ensure it is STP compliant and that your software provider is actively reviewing the steps to be compliant with STP Phase 2. If you are not using currently using STP-enabled software or you want to review your payroll systems, you can find out more about Sage’s payroll solutions

There will be additional information you need to report, which should already be captured in your current payroll software.

The category changes to the STP reporting as listed on the ATO website include:

  • Employment conditions
  • Income type and country code
  • Disaggregation of gross
  • Salary sacrifice
  • Lump sums
  • Reporting previous business management software IDs and Payroll IDs
  • Child support garnishees and child support deductions

Your Sage team will assist you in clarifying these and the impact on your business.

  • The way you submit your STP report
  • STP reports are still due on or before pay day unless you are eligible for a reporting concession
  • The types of payments that are in-scope for STP reporting
  • Taxation and superannuation obligations
  • End of year finalisation requirements
 

FAQ's

Need more information? Check out our FAQs.

Go to our FAQ page

Sage Resources 

We understand there’s a lot to understand about STP Phase 2 and as we get closer to the release Sage will be providing customers with resources and compliance checklists to support and enable them. In the meantime, please reference the current information available via the ATO:

Industry resources

Stay up to date with the latest industry resources and news.

Single Touch Payroll Phase 2 News

Tax Office outlines STP Phase 2 changes

23 March, 2021