ATO has successfully implemented Single Touch Payroll (STP) phase 1 across Australia effectively from 01-July-2019 which improved the visibility of employee payments that included reporting super and all the legacy payment summary details.
ATO has decided to continue to enhance the STP process with the introduction of Phase 2 with major changes being moving away from the payment summary categorisation of income, to reporting same data items (with validations) by income type.
What does STP Phase 2 involve?
The main objective of STP Phase 2 is to create a baseline data that is appropriate for consumption by various governments’ organisations. Phase 2 involves reporting staff payroll data at a granular level to the ATO. Multiple government organisations have shown interest in sourcing data directly from the payroll to modernise their existing processes.
STP Phase 2 – What’s changing?
The following categories will be further classified as per the table below:
|Lump Sum Payments||
What to expect?
The ATO will be providing more information in the near future that includes new version of Business Implementation Guide (BIG), new data structure, schema and its validation rules etc. STP Phase 2 is expected to go-live by 1st July 2021.
What it means to the employers using PeopleSoft HCM?
Employers may need to ensure that their payroll business process is in-line with STP Phase 2 requirements to extract the data to send to the ATO. Early preparation, reviewing your payroll system, up to date knowledge on the new legislation is the key to implement new initiative.
Want to know more?
INK IT Solutions has an excellent PeopleSoft HCM practice to help customers in implementing various solutions especially the Global Payroll module. INKIT Solutions recently also released the bolt-on package for PeopleSoft customers to handle JobKeeper Payments.
Our consultants have implemented STP Phase 1 for various major PeopleSoft HCM customers and their solution included review payroll, proposed recommendations, STP implementation including end of year process (EOY) and reconciliation tools.
Combined strength of the STP Phase 1 clients were approximately 40,000 employees handling complexities such as employees with multiple jobs, multiple entities and been paid through various pay cycles in a tax year.
Contact us for more information.
www.inkitsolutions.com.au | 0404 098 890 | firstname.lastname@example.org