Streamlined payments reporting for easier tax returns
The ATO began Phase 1 of its rollout of Single Touch Payroll reporting in 2019. On 1 January 2022, it will enter Phase 2.
This phase will make it easier for employers to report specific payment details made to employees across
all income streams, including:
- Gross income – gross residual, salary sacrifice, bonus and
commissions, overtime, director’s fees and paid leave, and
- Allowances – like car expenses, laundry allowances, meal
allowances, travel and accommodation.
For employees, this means tax time will be easier than it has been in previous years. All of their information will be on the MyGov website, meaning less paperwork and a more complete digital record.
In addition, employees will find it easier to understand how they’re getting paid and identify different payment types for tax and reporting purposes.
Accounting software companies Xero, MYOB and Reckon Hosted have a deferral for STP Phase 2 until December 2022.
You can read more on the ATO guidelines here.
With these deferrals, employers with the aforementioned software will have time to introduce Phase 2.
If you have any questions regarding STP, please contact our office on (07) 4638 1155.