Single Touch Payroll (STP) phase 2 is now the way an employer reports their employees superannuation and tax information to the ATO when you run your payroll.
The information that will be submitted to the ATO includes gross pay, paid leave, allowances, PAYG withholding & super liability information.
You’ll no longer have to send the ATO your employees TFN declarations.
Most employers are now reporting through STP. If you have not transitioned yet, you will have to start reporting unless an exemption has been granted.
Some Digital Service Providers need additional time to transition their customers to STP. If you are using one of these providers, they will advise you if the ATO have approved a deferral for you to start reporting later than the mandatory start date.
The mandatory start date for STP reporting was 1 January, 2022!
Child Support Reporting:
Child support can be set-up to automatically report to the Child Support Registrar. You must however still pay the required amounts directly to Child Support by the due date on your notice.
If you choose not to report Child Support through STP, you will need to report directly using your existing reporting channel.
Employers are required to continue to report & pay employees super entitlements through your existing clearing house or via your software.
You must report one of the following:
- your YTD employer super liability for each employee in the STP report (super type L)
- the YTD ordinary time earnings (OTE) for each employee in the STP report (super type O).
As Super is being reported to the ATO please ensure you pay by the following dates:
1 January – 31 March – pay by 28 April
1 April – 30 June – pay by 28 July
1 July – 30 September – pay by 28 October
1 October – 31 December – pay by 28 January
We would recommend paying by the 14th to ensure it clears in the employees fund making it deductible for you.
If you paid your super late:
You’ll need to lodge an SGC statement and pay this to the ATO as interest and penalities apply – see:
Any queries or concerns, please don’t hesitate to contact us
Reference Guide for common payment types:
The link below shows how to report some common payment types through STP Phase 2:
For more information on Single Touch Payroll – Phase 2, click here to be re-directed to the ATO website!
If you have any questions, please contact our office on (03) 9762 7344
The Team @ Knox Taxation and Business Advisory