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Although the official start date for Single Touch Payroll (STP) phase 2 is January 1, 2022, employers now have until March 2022 to make the transition. The expansion of STP, also known as STP Phase 2, will reduce the reporting burden for employers who need to report information about their employees to multiple government agencies.
Digital service providers (DSPs) who need more time to make the changes and update their solutions to support STP 2 can apply for a deferral for their customers. If your DSP has a deferral, they will let you know.
If you can start reporting by your DSP’s deferral date, you don’t need to apply for more time.
If your solution will be ready for January 1, 2022,
- you should start Phase 2 reporting
- If your solution is ready and you can start Phase 2 reporting before 1 March 2022, you’ll be considered to be reporting on time, and you won’t need to apply for more time.
If you need more time
- You can apply for more time past your DSP’s deferral if you need more time to transition.
- You’ll be able to apply for a delayed transition from December 2021. Registered agents will also be able to apply. More information will be available soon.
- There won’t be penalties for genuine mistakes for the first year of Phase 2 reporting until December 31, 2022. This includes employers who have already started Phase 2 reporting.