Introduction:
The official start of STP Phase 2 was 1 January 2022. The introduction of the STP Phase 2 was delayed until 1 October 2022. The government requires you to accept STP Phase 2, there is no choice.STP Phase 2:It is the latest version of existing STP reporting. The payrun has to be filed to report the Wages, Bonuses, Commissions and others. The ATO will capture additional details of employee’s tax deduction and employee terminations from the STP Phase 2 which means the company don’t have to file Tax Declaration Forms to ATO for staff. Purpose of STP Phase 2:It will help to reduce the reporting work for the employers who need to file the information about their staff to different agencies. After STP Phase 2 all the service agencies will get their required details from ATO.Benefits for Employers:
- Employers don’t have to send the TFN declarations of the employees to ATO.
- Employers don’t have to provide the Lump sum E Letter for the employees.
- Inform the change of software or employee’s payroll ID through STP report.
Benefits for Employees:
- Very helpful during the tax filing. Everything must be pre-filed.
- Employee don’t need to submit many documents like before.
- Reduces the number of times contacting for missing details or documents.
STP Phase 2 reporting – Quick reference guide | Australian Taxation Office (ato.gov.au)
