The ATO has introduced STP2 which broadly increases the reporting requirements for payroll. The key changes are:
Employment and taxation conditions
There are many factors that influence how you manage your employees in your payroll. These include:
- their employment basis
- the information on their TFN declaration
- details of when and why they leave.
You currently provide this information in different ways and on different forms.
Phase 2 streamlines this process by including the information in your STP report.
Disaggregation of gross
Your STP report currently includes a gross amount. This is the total of many different components and payment types. Because some of these are treated differently for social security purposes, you will now need to report more detail.
The disaggregation of gross wages is reflected in determining specific payment types for each employee payment.
Income types
You already tell us about the type of income your employees receive in your STP report.
The reporting of income types is being introduced in Phase 2 to more flexibly:
- identify payments you make to your employees with specific tax consequences
- make it easier for them to complete their individual income tax return
- help us identify where you are using a concessional reporting arrangement.
The income types are detailed here.
Tax treatment codes
Each employee has a tax treatment code that is submitted to STP based upon the information entered into the system. The tax treatment codes are detailed here.
Country codes
Sometimes you'll need to report a country code. For example, if you make a payment to an Australian resident working overseas, you'll need to provide information about the host country.
Child support garnishees and child support deductions
You'll have the option to include child support garnishees and deductions in your STP report. This will reduce the need to give separate remittance advices to the Child Support Registrar.
This is optional and not all STP-enabled solutions will offer this functionality.
Superannuation
SGC is now reported.
Reporting previous Business Management Software IDs and Payroll IDs
You may have the option to provide us with previous Business Management Software IDs and Payroll IDs in your STP report. This might occur when you've changed your business structure or changed software and can't zero out or finalise previous records.
Providing this information will help us reduce and fix issues with duplicate income statements for employees in ATO online services.
This is optional and not all STP-enabled solutions will offer this functionality.
More information
https://www.ato.gov.au/Business/Single-Touch-Payroll/Expanding-Single-Touch-Payroll-(Phase-2)/
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