March 31, 2022 * Archana at 2:15 pm

SapphireOne Single Touch Payroll Phase 2 Compliant

SapphireOne has been certified for Single Touch Payroll Phase 2 and Standard Business Reporting (SBR). As a result, SapphireOne clients will be the first to enjoy the benefits of Single Touch Payroll Phase 2. 

The SapphireOne team is updating Payroll/HR with Single Touch Payroll Phase 2 reporting for clients. Most importantly, STP Phase 2 will offer a more streamlined approach for employers reporting on payroll. Clients can report a pay event (upon payments subject to withholding) or an update event (upon transition, correction, or finalisation) to the Australian Taxation Office (ATO).

SapphireOne is assisting clients in the roll out of Single Touch Payroll Phase 2 across the board. In turn, we are working alongside the ATO during the implementation process, detailing reports and information. In the meantime, we suggest all SapphireOne clients review the ATO STP Phase 2 employer reporting. Similarly, all changes to the current reporting process as well new information will be included in the new payroll reporting process. 

SapphireOne enables clients to run payroll and report all employer and employee tax and super information with Single Touch Payroll. Similarly, this information and reporting practice will remain the same with Single Touch Payroll Phase 2. 

Reporting and Implementation of Single Touch Payroll Phase 2

Mandatory reporting began on 1 January 2022 and SapphireOne clients can now book an implementation for Single Touch Payroll Phase 2. Please email to request implementation. 

In addition, SapphireOne will be providing the ATO with a report on the information clients will be required to give. This includes: 

  • details of the remuneration you pay    
    • the type of income for the employee (such as salary and wages, or working holiday maker income)
    • the components which make up the amounts (such as gross pay, paid leave, allowances, or overtime)
  • details of your pay as you go (PAYG) withholding    
    • the amounts you have withheld from payments you make
    • information about how you calculated the amount, which you currently provide to us by sending a copy of the employee’s TFN declaration
  • super liability information.

Key Changes to Single Touch Payroll

There are some significant changes to note in regards to additional information for Single Touch Payroll Phase 2 reporting. These include:

  • Disaggregation of Gross – more detailed reporting of the various components and payment types that make up a gross amount. 
  • Employment and Taxation Conditions – Including employee information i.e. employment basis, TFN declaration and details of leave in STP reporting.
  • Income Types – Identifying employee payments with specific tax consequences and concessional reporting arrangement. Therefore, streamlining the individual income tax return process for employees.
  • Country Codes – reporting on payments made to Australian residents working overseas.
  • Child Support Garnishees and Deductions – Included in STP reporting, removing separate remittance advices to the Child Support Registrar.
  • Reporting Previous Business Management Software IDs and Payroll IDs – Reducing and resolving any issues with duplicate income statements for employees. Similarly, reporting if there have been any changes to software, business structure, etc.

A detailed overview of the Key Changes to Single Touch Payroll is listed on the ATO website. Read more here.

Major Benefits of Single Touch Payroll Phase 2

The ATO has noted that streamlining the Single Touch Payroll process will bring major benefits to employers and employees alike. Employers will no longer need to provide employees TFN declarations directly to the ATO, maintaining them within employee records. Additionally, Services Australia will receive reports with payroll information streamlining employment information and requests. 

Also, the ATO is streamlining employees interactions through pre-filled individual income tax returns. As a result, it’s providing better visibility on types of income and other information for reporting i.e. claims, benefits, changes to employment, etc.

To read the full list of Benefits of STP Phase 2 listed on the ATO website click here.

Requirements for SapphireOne Clients

The requirements for the SapphireOne client will be to email Sales requesting a quote for implementation. Please provide a list of each of your companies that has employees and an approximate number of employees per company. Subsequently, SapphireOne will provide a quote on a company by company basis.

The SapphrieOne implementation process includes identifying the fields that will need updating within your SapphireOne company data file. In addition, we ask clients to gather the appropriate information and we will populate that within the live data file. After populating all fields, we will be able to go live for that one company. For instance, if your organisation has multiple companies, please note in order which company you want implemented first and then a sequential list of companies to follow.

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