STP Phase 2 Important Information for all Easy Payslip Customers
Last updated November 30th, 2022
Key Takeaway: You do not need to do anything right now - just continue with your STP reporting as normal in Easy Payslip. A deferral is in place for all customer until 1st April 2023.
Here’s the quick guide:
- STP Phase 2 will bring about some changes to the way payroll and STP is managed in Easy Payslip
- Easy Payslip has secured a deferral from the ATO that covers all our customers and partners (deferral reference number 97 391 939)
- The deferral means we will be delaying the introduction of the STP phase 2 until 1st April 2023.
- It's possible we will get a further deferral to 1 July 2023 for existing customers, in order to simplify the transition by aligning it with the new financial year.
- Further information will be provided to all customers well in advance of the implementation of phase 2
- You don’t need to do anything now except continue your current STP reporting in Easy Payslip
1. What is STP Phase 2?
STP Phase 2 is an updated version of current STP reporting. STP reports containing employee payroll information will still need to be sent to the ATO each time you process a payrun.
However, for phase 2 additional information will be captured.
In some cases, you will not need to do anything differently:
For example, existing payslip items such as base wages, bonuses and commissions, and directors fees are currently automatically combined in the STP file and reported as one total. For phase 2, the STP file will automatically report these as separate totals. The good news is this will happen automatically for you.
Another example is employee tax details. In phase 2 these will be automatically sent in every STP file. This means it will no longer be necessary to lodge Tax File Declaration forms to the ATO for your staff. However, they will still need to be completed for new staff and retained for your records.
In other cases, there will be changes to how you create your payslips:
For example, there will be new categories of allowances for you to use.
Another example is for employee terminations, where additional information will be captured and reported through STP.
2. Why is STP Phase 2 Being Introduced?
The ATO has emphasised that this update will assist in reducing the reporting burden for employers who need to report information about their employees to multiple government agencies.
By capturing additional information through STP, other agencies such as Services Australia can collect this information directly from the ATO and streamline their administrative processes.
3. When was STP Phase 2 introduced?
The official start of Phase 2 was 1st January 2022. However Easy Payslip has secured a deferral from the ATO that covers all our customers and partners (deferral reference number 97 391 939).
The deferral means we will be delaying the introduction of the STP phase 2 until 1 April 2023.
4. Why did Easy Payslip Get a Deferral?
Let’s face it, the last few years have been pretty tough for small businesses in Australia. From the introduction of STP, to COVID lockdowns, to all the admin required to get government assistance. There’s been plenty to keep everyone busy, and not much of it has been fun or relates to focussing on your customers and growing your business. We are a small business too - we know!
We believe that the last thing small businesses need right now is more changes, more admin and more compliance.
We have secured the deferral for us and our customers to give us the flexibility to introduce it at a later date when things are (hopefully) a little more normal.
5. What do you need to do?
The good news is that all Easy Payslip customers are covered by our phase 2 deferral. You don’t need to do anything other than continuing with your current payroll and STP reporting in Easy Payslip.
If you are contacted by the ATO about STP Phase 2, simply provide them with our deferral reference number 97 391 939.
6. What’s next?
We will be providing further information to all customers well in advance of the introduction of STP phase 2. We're continually working with the ATO to ensure the minimal amount of additional work for our customers with the implementation of STP Phase 2.