You need to start Single Touch Payroll Phase 2 reporting

From 1 January 2023, you should be reporting the additional information required for Single Touch Payroll (STP) Phase 2.

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Single Touch Payroll Phase 2 is a mandatory obligation. The additional information required will help Services Australia customers, who may be your employees, get the right payment at the right time. It will also reduce the need for you to provide information about your employees to multiple government agencies.

Many digital service providers needed more time to update their solutions to offer STP Phase 2 reporting so applied for a deferral. Some of the providers have been granted a deferral on the start date of the STP Phase 2 for their payroll software. For example, Xero customers who report STP using Xero Payroll have until 31 March 2023 to report their first STP Phase 2 pay run, instead of the 1 January 2022 ATO deadline.

Please check with your digital service provider to understand the due date for STP Phase 2 reporting

What you need to do

Start reporting by:

following your digital service provider's instructions on the steps you need to take

asking your tax or BAS agent to support you through this transition

reviewing the employer guidelines by visiting ato.gov.au/stp2guide

Your digital service provider may also provide resources to assist you.

If you've already started STP Phase 2 reporting, thank you.

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