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Single Touch Payroll (STP) is how you send your payroll information to the ATO and it's been around since July 2018. The ATO is expanding STP to include additional information in your payroll reporting. The ATO are calling this expansion STP Phase 2 and it starts on 1 January 2022.

To learn more about this change, visit the ATO website.

What's NOT changing?

Don't let the new name worry you — there are many things that won't change under STP Phase 2, like:

  • how and when you lodge your STP reports
  • the types of payments you report
  • your tax and super obligations
  • end of year finalisation.

What's MYOB doing?

We've updated AccountRight to ensure it meets the new STP requirements. We've added some fields to your employees' cards and updated the list of ATO reporting categories. We'll let you know when to move to STP Phase 2, at which time you'll be guided through the process.

We've obtained a deferral from the ATO

This deferral means that because you're using MYOB, you have until 1 January 2023 to start reporting via STP Phase 2. This means you can relax and start getting ready at a time that suits you in 2022.

What do I need to do?

Throughout 2022, you'll be prompted in your AccountRight company file to make the move from STP Phase 1 to STP Phase 2. At that time, your payroll details will be checked to ensure they meet the new STP requirements, and you'll be notified if anything needs fixing. This is very similar to what happened when you first set up STP.

We recommend waiting until your software guides you through this transition. So until then, you don't need to do anything.

But if you want to get a headstart, you (or your accounting advisor) can manually check your payroll details. This might reduce the stress of your transition to STP Phase 2 and simplify the process.

If you need help checking or updating any of these details, find an MYOB Partner who can assist.

Using AccountRight in a web browser?

If you prefer working in the browser, you can check your payroll details there. This gives you more flexibility in how and where you prepare for STP Phase 2. Take a look.

1. Check your business details
  1. Go to Payroll Payroll Reporting > Company Information.
  2. Make sure the following details are recorded for your business:
    • Company Name
    • ABN
    • Street Address
    • Suburb/Town/City
    • State
    • Postcode
    • Name (of contact person)
    • Phone (of contact person)
  3. If you have an ABN Branch, enter it here. What is this?
  4. Click OK to save any changes.
2. Check your employee information

There is specific employee information that needs to be recorded in AccountRight to ensure the ATO accept your payroll submissions for STP Phase 2.

So check the details of each employee you've paid in the current payroll year (including terminated employees) and enter any missing or outdated information. But don't worry about inactive employees.

To check an employee's details

  1. Go to Card File > Cards List > Employee tab > open an employee's card.
  2. Make sure current information is recorded in each of these fields:

    On the Profile tab:

    • Last Name
    • First Name
    • Address
    • Suburb/City
    • State (you need to select a state from the list and not type it. If you have additional addresses (Address 2, etc.) ensure complete details are entered here too)
    • Postcode


    On the Payroll Details tab > Personal Details section:

    • Date of Birth
    • Start Date
    • Employment Basis


    On the Payroll Details tab > Taxes section:

    • Tax File Number
    • Income Type

      Do you employ working holiday makers?

      If you choose Working holiday maker as the Income Type, you'll also need to choose the worker's Country of origin. Also check that the correct Tax Table is assigned to working holiday makers based on your business's working holiday maker registration status.


  3. Click OK to save any changes.
  4. Repeat for each employee you've paid this payroll year.

Tell me more about entering employee details.

3. Assign ATO reporting categories

You would have assigned an ATO reporting category to each of your wage, super and deduction pay items when you first set up STP. It's a way of categorising your employees' payments for the ATO.

For STP Phase 2, the ATO has expanded the list of reporting categories to better define employee payments. For example, the ATO reporting category Gross payments is now split into more specific payment types, like overtime and bonuses. This is because some of these payments are treated differently for social security purposes, so they need to be reported in more detail.

You'll need to assign an ATO Reporting Category (Phase 2) in each wage, super, and deduction pay items you've used in the current payroll year.

Run the Payroll summary report to list all the wage, super and deduction payroll categories you've used this year to date (Reports menu > Index to Reports > Payroll tab > Payroll Summary).

 

To assign ATO reporting categories

  1. Go to Payroll > Payroll Categories > click the applicable tab (Wages, Superannuation or Deductions).
  2. Click to open a payroll category.
  3. Choose an ATO Reporting Category (Phase 2).
  4. Click OK to save any changes.
  5. Repeat for all wage, superannuation, and deduction payroll categories used in the current payroll year.

Need help choosing an ATO reporting category?

Unfortunately we can't tell you which ATO reporting categories to assign to your pay items — but your accounting advisor or the ATO can.

Tell me more about assigning ATO reporting categories.

ATO reporting categories for STP Phase 2

Wages and salary pay itemsDeductions pay itemsSuperannuation pay items

Gross payments

Exempt foreign income

Overtime

Bonuses and commissions

Director's fees

Allowance - cents per km

Allowance - award transport payment

Allowance - travel and accommodation

Allowance - overtime meals

Allowance - laundry

Allowance - tools

Allowance - tasks

Allowance - qualifications/certificates

Allowance - other

Lump Sum A - termination

Limp Sum A - redundancy

Lump Sum B

Lump Sum D

Lump Sum E

Lump Sum W

ETP taxable component

ETP tax free component

Cash out of leave in service

Unused leave on termination

Paid parental leave

Workers' compensation leave

Ancillary and defence leave

Other paid leave

Deduction - union/professional assoc. fees

Deduction - work place giving

Salary sacrifice - other employee benefits

ETP - tax withholding

Superannuation guarantee

Reportable Employer Super Contributions

Salary sacrifice