Single touch payroll expansion – changes employers need to prepare for
Some digital service providers (‘DSPs’) needed more time to update their products and applied for deferrals, which cover their customers – therefore, when an employer can start Phase 2 reporting depends on when their payroll product is ready.
Employers that have not already started Phase 2 reporting should ask their DSP when their product will be ready (if they don't already know). Employers need to be across the changes and get ready to start Phase 2 reporting. This includes:
- checking if changes need to be made to payroll pay codes/categories so they align with Phase 2 requirements;
- reviewing allowances employers pay and how they need to be reported in Phase 2;
- understanding changes to salary sacrifice reporting; and
- understanding how to assign an income type to each payment.
The ATO is also reminding employers that amounts paid to 'closely held payees' should now be reported through STP.
A ‘closely held payee’ is an individual directly related to the entity they receive payments from. For example, family members of a family business, directors or shareholders of a company and beneficiaries of a trust.
There are concessional reporting options for closely held payees reporting which include the following:
- Reporting actual payments on or before the date of payment (along with arm's length employees).
- Reporting actual payments quarterly.
- Reporting a reasonable estimate quarterly.
If you require assistance with your STP obligations or want to know more, please contact our experts via the form below or on:
Brisbane – Donavin van Rooyen | Melbourne – Jonathan Cicutto | Sydney – Matthew Ashley |
+61 7 3218 3900 | +61 3 9252 0800 | +61 2 9922 1166 |
Published: 09/06/2022
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