We have essential updates regarding Salary Sacrifice reporting and activity statements that need your attention.

Salary Sacrifice Reporting: STP Phase 2 Transition

Employers have shifted to Single Touch Payroll (STP) Phase 2. Notable changes:

– Use ‘S’ for superannuation sacrifices.
– Use ‘O’ for other benefit sacrifices.

These changes enhance transparency in employee salary sacrifice activities.

Activity Statements: No Changes, Just a Reminder

Activity statement requirements remain unchanged. Report only post-sacrificed amounts at label W1. Pre-sacrificed amounts aren’t to be included.

We will pre-fill labels W1 and W2 in ATO online services based on STP data, ensuring compliance.

Adapting to Your Payroll Solution

Different payroll solutions may vary in handling and displaying salary sacrifice amounts. Consult your payroll product’s guidance for accuracy.

Your Questions, Our Support

Change, while necessary, can sometimes be daunting. If you have any questions or require further assistance with salary sacrifice reporting or activity statements, please don’t hesitate to reach out to us. Our dedicated team is here to support you in navigating these changes effectively and ensuring your financial operations remain seamless.