The ATO is currently circulating reminders about the STP Phase 2 changes now in effect - check your payroll processing.
What you need to know :
STP Phase 2 started on 1 January 2022. Some Digital Service Providers (DSPs) needed more time to update their products and transition their customers (typically the ATO is talking about software providers like XERO/MYOB/Quickbooks/Reckon and payroll service providers such as ADP here). What this means is, if your DSP has a deferral, you have a deferral. If that's the case, make sure you understand when your product will be ready and that you are ready to start Phase 2 reporting when it has been updated, or no later than the first pay day after your DSP deferral expires. Most of the software providers have a deferral date of 31 December 2022.
As the ATO highlights, it's important though to understand which of the following circumstances apply to you:
- your payroll product is ready - it's time for you to start STP Phase 2 reporting now or have a plan in place to transition ASAP
- the product you're using is not being updated to offer STP Phase 2 reporting - if that's the case, your DESP should let you know if they have another product you can use, but if not, you'll need to choose another product/provider that does offer STP Phase 2 reporting
- your DSP has a deferral - you have a deferral - but make sure you provide the necessary detail to assist with the transition and that you understand when your product will be ready.
Phase 2 reporting is a requirement . The ATO has prepared resources such as a factsheet and a checklist to provide assistance - as have the DSPs. For detailed information about reporting requirements, visit the ATO website.
