Yes, Employment Hero (EH) can support the new STP reporting requirements. We have listed below some common sub-questions and answers we get on this topic.
Regarding STP phase 2, will EH Payroll automatically start reporting the extra data on the March 1st?
Yes, the EH Payroll platform will start reporting the STP Phase 2 requirements from 1 March 2022.
Are allowances paid also part of the components required to be reported?
Yes, you can read further guidance at " target="_blank" rel="noopener noreferrer"this page.
With STP Phase 2 setup by the 1st March, do we need to make adjustments to previous pays prior to the date of change? Or with Employment Hero Payroll, do this automatically for us?
Pay Runs with a paid date on or after 1 March 2022 will report STP Phase 2 data as the ATO relies on Date Paid reporting. Pay Runs that have been finalised and lodged with a date paid prior to the 1st March 2022 do not need to be amended.
Could I please ask if EH has got this automatically set up if we are already submitting STP through EH?
If I have Employment Hero as my payroll software, can I assume I will be ready for STP phase 2? Is there anything I should update from my side?
Clients utilising the pre-built award packages will have the classifications updated to maintain STP Phase 2 compliance. Non-Award categories will need to be changed to the correct classification manually to ensure you report these correctly.
Is there a list of how the allowance and deductions need to be categorised for STP Phase 2
Yes, you can read further guidance via the following " target="_blank" rel="noopener noreferrer"link.
Question on the reporting part: What is the extent of customisation permitted regarding reporting on the payroll side of EH?
The Payroll classic platform does offer custom reporting, in addition to a variety of pre-built reports available for payroll auditing needs.
Can we ask what penalties may apply if you are not ready with your STP2 reporting?
The ATO has wide powers to issue penalties for non-compliance, but has also shown that it will take a relaxed approach in the first year of STP2 reporting. We would suggest that if you will not be ready for STP2 reporting, that you discuss this with the ATO. They also have powers to grant deferrals to give you a later date to report on STP Phase 2. You can read further information at " target="_blank" rel="noopener noreferrer"this page.
Do we need to raise a support ticket if we have a query about the STP changes, i.e. confirming the payment category?
If you are having difficulty in navigating the platform to confirm your setup, you may reach out to the support team for guidance. The support team cannot advise which categories fall into which classification and it would be best to seek this level of confirmation from the ATO directly.
Does the requirement for the country to be listed for visa holders apply to all visa types?
It is not all visa holder types and you must report country codes when you make payments to employees with the following income types:
- Foreign employment income (FEI)
- Inbound assignees to Australia (IAA)
- Working holiday maker (WHM).
If you make a payment to an Australian resident working overseas, you must provide information about the host country. If you make a payment to a working holidaymaker or inbound assignee, you must provide information about their home country. You can read further guidance at " target="_blank" rel="noopener noreferrer"this page.