SINGLE TOUCH PAYROLL PHASE 2
Single Touch Payroll Phase 2 is a sweeping change to the existing Single Touch Payroll system that has been in operation for a few years now. The Government requires all business to adopt STP 2 - this is not optional. A huge amount of additional information will need to be provide to Centrelink, the ATO, Fair Work Australian and Child Support Agency.
The complexity of Single Touch Payroll Phase 2 is substantial and our firm has done extensive training to ensure accurate payroll data processing.
New Payroll Codes
Employment Basis - 7 codes
Cessation Type - 7 codes
Employment Category - 10 codes
Tax Treatment - 9 codes
Medicare surcharge - 3 tiers
Medicare Levy Exemption/Reduction - 2 codes
Study & Training Support Loans - 2 codes
Income Stream Types - 10 choices
Paid Leave Types - 6 choices
Allowance types - 10 choices
Salary Sacrifice - 2 types
Lump Sum - 6 types
Eligible Termination payments - 8 types
Deductions - 4 types
Superannuation Entitlements - 3 codes
Reportable Fringe Benefits - 2 types
What does this all mean?
What is changing under STP2 reporting is the detail of the information that is to be reported. STP2 will drill down into employee pay information and elements to provide a much greater level of detail to government agencies. The type of details that will now be requires is split up into new payroll categories and codes.
Our approach to STP 2 has been to embrace the challenge. We are aware that it is a much more complex system of reporting payroll and correct set up of the payroll is so important.
At this stage, we are limited by the implementation process of the various software providers. However, the implementation deadline will be 31 December 2022.