Name: Endeavour Solutions
Address: AU
Telephone: 1300 583 097

What is "Single Touch Payroll Phase 2"?

In the Budget of 2019–20, the Australian government announced that Single Touch Payroll (STP) would be extended to include additional information. 1 January 2022 was initially set as the mandatory start date for Phase 2.

STP Phase 2 will reduce the reporting burden for employers who need to report information about their employees to multiple government agencies. It will also help Services Australia’s customers, who may be your employees, get the correct payment at the right time.

Whilst this is great news and have lots of benefits for both employers and employees (e.g. no longer needing to send the ATO your employees’ TFN declarations.), this does mean that you will need to update your payroll systems to be compliant.

Read the ATO’s Employer Guide here.

STP Phase 2 deferral

STP Phase 2 starts on 1 January 2022. However, recognising the challenge this start date imposes on software providers and employers, the ATO recently announced that customers can defer this start date to 1 March 2022.

To ensure MYOB Advanced clients have sufficient time to transition to STP Phase 2, the ATO has granted MYOB clients using MYOB Advanced Payroll a further deferral until the start of the payroll reporting year 2022. It means that customers don’t need to apply for their employer deferral unless they won’t be ready by July 2022 or stop using MYOB Advanced Payroll.

So, what do customers already on MYOB Advanced Payroll need to do?

Continue to meet their existing Single Touch Payroll reporting obligations.
Once your site has been updated and is on the STP Phase 2 enabled version, complete the transition to STP Phase 2.
Customers should ideally not wait out the deferral period, so get in touch today.

MYOB Advanced Payroll upgrade timeline

All MYOB Advanced Payroll clients will be upgraded to the STP Phase 2 enabled version between February and June 2022. However, the upgrade won’t automatically switch to STP Phase 2 – each client will remain on the current version of STP until they complete their transition.

The STP Phase 2 transition requires each client to review and update reporting categories at three levels: company, employee and pay item. To guide clients through the change, we will be releasing our white paper that refers to the relevant ATO guidance in due course.

For many clients, the transition will involve a simple mapping. However, other clients might need to adjust pay item structures to align with the new reporting requirements – for example, allowances and overtime. These clients are likely to need more support and might need the assistance of your certified MYOB Advanced Payroll Partner, like Endeavour Solutions.

We strongly encourage our MYOB Advanced Payroll clients to transition to STP Phase 2 in the month they upgrade to allow enough time to plan and manage the migration across the entire MYOB Advanced Payroll community.

Next Steps

The 2021.1.3 release of Advanced Payroll supports the new STP Phase 2 reporting structure. MYOB is currently doing extensive acceptance testing with the ATO to ensure a smooth transition, which will take weeks to complete.

As an MYOB certified partner, Endeavour will communicate with our customers around their exact upgrade windows and work with each on a case-by-case basis to ensure compliance at the correct times.

If you need assistance with your STP Phase 2 changes in MYOB Advanced Payroll, feel free to contact our friendly team on 1300 583 097 or info@endeavour.solutions.

About Endeavour Solutions

Endeavour provides business software solutions and accounting solutions to mid-sized businesses from Melbourne, Sydney, Auckland, Wellington, and Christchurch branches. Started in the 1980s, they have hundreds of customers and provide solutions in many business sectors.

Their point of difference is building solid business relationships with their clients. Part of this is to make sure they share a common culture with their clients, and the most effective communication and processes are used. Its mission is to bring the best possible solutions to its clients using the highest level of service. They measure this in client satisfaction levels and longevity of their business relationships.

STP Phase 2 & MYOB Advanced Payroll