STP (Phase 2) - Flare Update

STP is the way you report your employees' tax and super information to the ATO and Phase 2 provides additional information that will be used by the ATO and Services Australia. STP Phase 2 was due to start on 1 January 2022 but many payroll providers have exemptions to start at a later date.

MYOB Payroll has updated its software and payroll users have until 1 January 2023 to make the move to STP Phase 2.

Xero Payroll has updated its software and payroll users have until 31 March 2023 to make the move to STP Phase 2.

Other payroll providers, who have not yet moved to STP Phase 2, and need more time to make the relevant changes should have applied for a deferral and will let you know what date you are required to start STP 2 reporting.

You do not need to apply for more time if your payroll provider has received a deferral and you transition your payroll before the deadline.

However, if you still need more time beyond your provider’s deferral date, you are able to apply to the ATO to delay your transition. See more information on how to do this here.

As part of this process now being complete, Flare will no longer maintain its licence as a DSP. This means Flare will no longer submit your employees information through to the ATO upon completing onboarding. As your payroll provider is already completing this process on your behalf.

If you have an approval deferral, you will still be able to submit your employees details to the ATO manually using the tax declaration form completed during onboarding.

To locate the Tax Declaration completed by an employee you can head to Employee > Documents > Completed Documents.

If you are still in a deferral period and need assistance, please contact our team directly for assistance.

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