Single Touch Payroll - Phase Two | New Reporting Actions Required

With the continuing rollout of Single Touch Payroll – Phase Two well underway since the beginning of the year, we’ve now entered “stage 2” of the process, with employers required to identify and update certain pay items with new earnings categories as defined by the Australian Tax Office.

Whilst the deferral of STP Reporting is still an option in place until March 2023 through select payroll software providers, it is important business owners are current and up-to-date on their requirements – noting changes as and when they occur.

As such, the below highlights areas for business owners to double-check and the additional information required by the ATO in validating PAYG Withholding data:

Check your business details are correct  
Check your employee's details are correct

Including information such as those outlined in the employee's Tax File Declaration:

  • Full Name
  • Date of Birth
  • Residential Address
  • Residency Status
  • Tax File Number
  • Superannuation Details
  • Employment Type
  • Commencement Date
Select Employee Income Types

Employee Income Types options include:

  • Salary & Wages
  • Closely Held Employees
  • Working Holiday Makers
  • Seasonal Work Program
  • Voluntary Agreement (Contractors)
  • Labour Hire
Determine Tax Scale for PAYG Withheld

Five types of tax scales to report include:

  • Regular
  • Seniors & Pensioners
  • Actors, Variety Artists, and Other Entertainers
  • Horticulturists and Shearers
  • Working Holiday Maker
  • Seasonal Worker Program
  • Foreign Resident
  • No TFN
  • Voluntary Agreement

Information required by the Australian Tax Office as part of their defined reporting categories include:

  • Wages
  • Superannuation
  • Deductions
  • Child Support
  • Taxes
  • Lump Sum E-Payments

Additionally, employers will be required to itemise and report on the following Individual Income Components:

  • Gross Payments (Ordinary Time Earnings)
  • Overtime
  • Directors' Fees
  • Allowances
  • Bonuses & Commissions
  • Paid Leave (e.g. Annual Leave, Sick Leave, and Long Service Leave)
  • Paid Parental Leave
  • Cash out of Leave
  • Unused Leave on Termination
  • Workers' Compensation
  • Lump Sum Payments
  • Salary Sacrifice

With the implementation of these new steps in the process, it is important to check with your bookkeeper or payroll administrator to ensure these are being reported on and current on requirements.

Our team is here to assist SME clients with the STP - Phase Two transition and the updating of appropriate details. To discuss the various steps in the process in greater detail, please feel free to contact our team on (07) 3002 2699 | info@agredshaw.com.au.

 
Leanne Badjou

Written by Leanne Badjou

   

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