Most employers have now moved over to Single Touch Payroll (STP) Phase 2 reporting. In fact, over 730,000 employers have started reporting STP Phase 2 information for over 10.8 million individuals!
The ATO have seen some mistakes as employers have moved to STP Phase 2 reporting, and they want to work with you to help get it right. The most common mistakes include:
- Pay codes: Make sure you’ve set up your pay codes correctly, and that payments including allowances, paid leave and overtime are listed separately.
- Continuity of year-to-date (YTD) reporting: If you’ve moved to STP Phase 2 reporting part-way through the financial year, check that you have maintained the YTD amounts you had already reported through STP Phase 1. This includes salary and wages you’ve paid your employees, employment termination payments, pay as you go withholding amounts, and more. This applies unless you used an alternative method for transitioning to STP Phase 2.
- Employee details: An employee’s name, tax file number and date of birth helps the tax office to match your STP records with your employees. As tax time approaches, now is a good time to make sure these details are accurate and complete.
- Employment basis: Remember, you need to report accurate information about your employees’ employment basis, such as full time, part time, or casual each time you run your payroll.
The ATO have a range of resources available to help you get your STP Phase 2 reporting right. These include an overview of common STP Phase 2 reporting questions and mistakes, featuring short, topic-based videos.
As always, if you have any queries regarding any of the above, please don’t hesitate to contact our team.
Source: ATO Newsroom