Single Touch Payroll Phase 2

Single Touch Payroll (STP2)

All employers, including those with closely-held employees (e.g. directors), need to already be using STP from 1st July 2021. The ATO have been rolling out this new system to employers over the last three years but now Single Touch Payroll PHASE 2 is here which reports more categorised information, mainly with the goal to assist Services Australia.

Not sure what Single Touch Payroll is? Have a read of our original article for more info. Jump to your relevant section below where we’ve included How-To software instruction links.

• For Employers

• Software Support Links

• EOFY Finalisation

• For Employees

For Employers

If you have staff, you should already be reporting under Single Touch Payroll in your business’ accounting software. We are here to help make reporting with STP as painless as possible and offer compliant STP services from bringing your software up to date and STP-ready all the way to processing your payroll each pay run for you.

See below software support links for more technical step-through guidance.

Need more understanding for yourself? The ATO's explanation on STP and what is required from you as an employer: https://www.ato.gov.au/Business/Single-Touch-Payroll/

Software

Support links below to assist you in ensuring your accounting software is correctly setup for STP or please make contact us with for more help.

• ATO Categories Quick Reference
  STP Phase 2 reporting – Quick reference guide | Australian Taxation Office (ato.gov.au)

• MYOB Business/Essentials

  • Getting ready for STP Phase 2 - MYOB Business - MYOB Help Centre

  • Setting up Single Touch Payroll reporting - MYOB Essentials Accounting - MYOB Help Centre

• MYOB AccountRight:

  • Getting ready for STP Phase 2 - MYOB AccountRight - MYOB Help Centre

  • Setting up Single Touch Payroll reporting - MYOB AccountRight - MYOB Help Centre

• Xero:

  • STP Phase 2 Resource Hub | Xero AU

  • STP Phase 2 - Employee Profiles How To PDF

  • Set up Single Touch Payroll – Xero Central

• Quickbooks:

  • Preparing for Single Touch Payroll (STP) Phase 2 (intuit.com)

  • How to set up Single Touch Payroll - Quickbooks (intuit.com)

• Low-Cost Solutions: https://www.ato.gov.au/business/single-touch-payroll/in-detail/low-cost-single-touch-payroll-solutions/?=redirected_STPsolutions

• Free Option: https://www.freeaccountingsoftware.com.au/single_touch_payroll

EOFY Finalisation

At the end of each financial year, the payroll data needs to be “finalised”. This process confirms the data is correct and allows the employees to receive accurate Income Statements to their myGov account for the preparations of their tax returns.

Due date: this must be completed by 14th July each year.

Software links below to assist you in the finalisation process for your employees or take advantage of our service for this.

• MYOB: End of year finalisation with Single Touch Payroll reporting - MYOB AccountRight - MYOB Help Centre

• Xero: End of financial year payroll | Xero AU

• Quickbooks: End of Financial Year Processing using STP - Frequently Asked Questions (intuit.com)

For Employees

Single Touch Payroll is your gateway to your payroll data throughout a financial year so you don’t need to wait until tax time to know where you’re at or if you change jobs mid-year. All you need is your myGov account.

Your Income Statement will be confirmed by 14th July each year by your employer and advised to you via your myGov account inbox. Check with your employer if you’re unsure or ask us for help.

The ATO’s explanation on what STP means for you: https://www.ato.gov.au/Business/Single-Touch-Payroll/Single-Touch-Payroll-for-employees/What-Single-Touch-Payroll-means-for-employees/