Single Touch Payroll (STP) Phase 2: Employment and taxation conditions

Overview

You will now report directly via STP the information you provide to the ATO and other government agencies through various submission forms. This will streamline your reporting processes and save you time managing your ATO commitments.

Important

This means that employers will no longer need to send TFN declarations to the ATO or provide employment separate certificates when an employee ceases employment. You will need to submit the required information through STP instead.

Fields relating to the employee/employer relationship

The following fields relate to the employment relationship between the employer and the employee, as well as the taxation conditions of the employee to identify withholding tax rates:

  • Employee's commencement date.
  • Employee's cessation/termination date.
  • Employment basis cessation/termination reason.
  • Tax treatment.

An employee’s commencement date and termination date are existing fields that were already reported on as part of STP Phase 1, however employment basis, cessation/termination reason and tax treatment are new mandatory fields.

Helpful Hint

Existing employees do not need to complete a new TFN declaration to report through STP Phase 2 requirements. For new employees, they will still need to complete their TFN declarations to ensure the collection of the correct tax information. However, employers do not need to lodge the TFN declaration to the ATO.

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