18th November, 2022
Time is fast running out for employers to be compliant with STP Phase 2. Here’s what you need to know.
In a recent article for Kochie’s Business Builders, MYOB’s Small Business Accounting expert Chris McComb wrote that only around 32 percent of small and medium business operators had discussed Single Touch Payroll Phase 2 (also known as STP2) with a trusted advisor.
Given the compliance deadline for this payroll legislation is now looming, the data suggests many business operators are leaving things until the last minute when it comes to getting ready for STP2 and that could put them at risk from additional scrutiny or penalties from the ATO.
Perhaps you think that since you’re set up for STP, then you must be STP 2 ready. Or perhaps you think that this is a simple ‘tick box’ exercise that you can worry about in the new year. Perhaps you’re an accounting or bookkeeping advisor and you’re waiting for your clients to raise the issue proactively with you. Whatever the situation, now’s not the time to take a head-in-sand approach to payroll compliance.
“Whether you’re a small business employer or an advisor to one, getting ready for STP 2 now is the best way you can get on the front foot for 2023,” said McComb.
“It’s a technical process – the larger and more complex the business is, the larger and more complex the task ahead will be – but that’s even more reason to get ahead now.”
And with multiple enhancements and updates being made to MYOB’s STP-ready business management platform, the process is smoother than ever.
“Our in-product readiness check will help guide customers through this process,” McComb told us in a new interview, encouraging all MYOB Partners to prepare their clients for the switch before it’s too late.
“With the MYOB ATO deferral deadline only weeks away we’re strongly encouraging all MYOB Payroll customers and Partners to make the switch to STP 2 as soon as possible to be compliant by the 1 January 2023 STP 2 reporting deadline.”
STP 2 introduces more ATO reporting categories on top of what was introduced in the first phase of STP, so understanding how these will apply to your payroll is a key element of preparing for STP 2.
For an explainer on STP 2, see our blog on the topic. If you’re looking for further detail on reporting categories, do check out the ATO website. Finally, if you want to know more about preparing for STP 2 in MYOB specifically, be sure to visit the STP information hub, as well as sharing it to other business operators in your networks.
For those using MYOB AccountRight, the answer is yes.
However, for those migrating from an older version to the latest version of MYOB Essentials, there is a deferral available until 31 March 2023. Your deadline may depend on the specific version of software you’re using, so it’s advisable to either confirm your deadline with a trusted advisor ASAP, or simply assume your deadline is 1 January.
For small businesses, you can start by finding an advisor in your local area who can recommend the most effective way forward.
You’ll also find there are upcoming live webinar sessions to help step you through the process.
For accounting and bookkeeping advisors to small businesses, you can also gain access to even more education and training materials as part of the MYOB Partner Program (it’s free to join!).
Don’t wait until it’s too late! Get started with STP Phase 2 and avoid the stress of a last-minute rush to remain compliant. Find out more via the MYOB STP Hub.