payroll

Getting STP Phase 2 reporting right

Single Touch Payroll (STP) Phase 2 reporting started 1 January 2022

So far, more than 200,000 employers have started reporting STP Phase 2 information for over 3 million individuals.

There are some mistakes being made with the move to STP Phase 2 reporting.

We’re sharing the most common errors so employers can avoid making them:

  • Re-mapping pay codes or categories incorrectly. Check if you have pay codes for items you need to list separately, such as bonuses, commissions and overtime
  • Continuity of year-to-date (YTD) reporting. If the solution you use requires you to input your existing YTD amounts manually; make sure you bring over all the amounts you need to
  • Incorrectly categorising allowances. You must report all allowances separately in your STP Phase 2 reporting, which includes 8 allowance categories and one for ‘other allowances’. Only report an amount as an ‘other allowance’ if it doesn’t fit into one of the 8 categories.

Related reading

Source: ATO