STP Phase 2 is coming to Payroller within the coming months
We're gradually rolling out new features and making small changes to the Payroller web and mobile apps over the coming few weeks.
Here are all the key changes in Payroller.
What is STP Phase 2?
In the 2019-20 Budget, the Federal Government announced an expansion to the Single Touch Payroll (STP).
In this expansion, known as STP Phase 2, you will no longer need to manually report information about your employees to multiple government agencies.
For example, if you have an employee with a child support deduction, you can report this information solely through Payroller. You will not be expected to report this information again to the Child Support Registrar.
Furthermore, STP Phase 2 will also help Services Australia issue correct payment to their customers who may also be your employees.
The scheme officially began on 1 January 2022. However, all Payroller users have an extension until 1 July 2022.
Learn more about STP Phase 2 in our recent blog post.
What does STP Phase 2 mean for your business?
Your existing reporting and payroll processes stay the same under STP Phase 2.
The following will not change under STP Phase 2:
the way you report
reporting due dates
the types of payments you make
tax and super obligations
EOFY reporting and finalisation requirements
The only difference is that Payroller will send more information about your employees.
We have most of this information from when you set up your employees and created pay runs.
However since STP Phase 2 includes more information, you’ll be asked to do a one time update for your employees to complete the switch over to STP Phase 2.
What do you need to do?
When you log in to Payroller after STP Phase 2 is activated for your business, you will see the following pop up:
Provide the missing information to switch to STP Phase 2.
The additional details required by the ATO are:
Status of residency (e.g. Australian resident for tax purposes, foreign resident, Working Holiday Maker)
Income Type (e.g. Salary and Wages, Closely Held Payee, Seasonal Worker Programme)
Whether or not your employees are horticulturalists and shearers
Country Code (if they are a Working Holiday Maker)
If you do not know this information, you can click Cancel and fill it out later.
The pop up will appear every time you log in until you complete it.
If you make a mistake, you can edit these new details in your employee's settings under the Tax section.
To be compliant with STP Phase 2, please fill out this form before 1 July 2022.
If you have an exemption from the ATO, you do not need to fill out this form until your extension expires.
Please note that Payroller will not stop you from using the original version of STP but it is your responsibility to meet your reporting obligations.
What happens after switching to STP Phase 2?
The way you create pay runs and report STP stays the same even after you switch to STP Phase 2.
Payroller will automatically convert all your pay runs for this financial year into the new reporting format.
New payment types will also be added to Payroller and can be found when you click on More in a pay run.
The new payment types are:
Paid parental leave
New allowance types
Child support deductions and garnishees (not mandatory)
If you terminate an employee, you will need to report the termination date and reason. These can both be added in a pay run when you make the termination payment.
Are there any other changes?
TFN: You are also no longer required to submit a Tax File Number (TFN) declaration as this information will be sent through STP Phase 2.
Working Holiday Makers: For businesses that employ Working Holiday Makers, you need to indicate whether you are registered for the scheme. This can be done in Settings under Organisation Settings.
How do I get access to STP Phase 2 changes on my account?
We're gradually rolling out these changes on the Payroller web and mobile apps so you may not see them immediately.
If you are using the mobile app, you will be notified to download the latest version from the Apple App Store or Google Play Store.
The update will appear automatically for web users - no download is required.
What do I do if I need help with these changes?
Our support team is available to help you with any questions you have about these changes.
You can also check out our frequently asked questions and tutorials for guidance.