The Australian Government now requires all employers to provide additional payroll information from the employer’s systems to the ATO and where applicable that information will be provided to Services Australia.
Impact on employers
- A single streamlined system that aligns your Fair Work obligations with ATO reporting and now Services Australia reporting, from within your payroll systems.
- The TFN Declaration that must still be obtained from new employees will now be submitted to the ATO through the software (previously a separate process).
- An Employee Separation Certificate that currently must be provided to each employee that leaves the business will now be automatically provided through your payroll system.
- Where applicable, Child Support reporting obligations of the employer (subject to your software) may be reported from your payroll system, currently a completely different calculation and submission process.
- Services Australia will now receive Income Details of employees removing, in most cases, any need for further information from the employer
To achieve the above changes, your payroll software has been developed to facilitate the additional reporting.
In order to implement the required STP2 reporting your payroll system will require review and adaption:
- Ensuring all required Employee details are in the software which includes new information such as income type, country codes, employment basis
- Enabling the appropriate additional reporting codes
- Mapping new codes and remapping existing codes to align the software with the ATO required codes
- Ensuring that the payroll administration process of your business ensures we capture all the necessary information at any change
We have this process as part of our suite of services available to you. In conjunction with our professional association the Institute of Certified Bookkeepers we have the training, resources, and support to ensure an efficient implementation of this new system.
The process to transition to the new reporting requirements must be performed in conjunction with the release of the STP2 enabled features of your payroll software. We are in communication with your software provider and will update you further with the intended dates to transition your business.
The ATO advise that each software company has being provided with a final date by which all of their clients MUST have made the transition. We will keep you informed which date your software provider has been directed have the changes ready by. We note that the ATO have indicated 2022 will be a year of transition and in most circumstances of genuine intent to comply with the shift to STP2 by the allocated date, employers will not be subject to any penalties.
We estimate the cost to your business for our services to conduct the review and implementation to be $275.00*** (including GST)
Rest assured we have this under control. We will keep you informed and achieve a streamlined implementation of STP2.
For more information, reach out to us for a FREE consultation by clicking here to to see how we can help you implement STP2.
***(conditions apply).
