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Single Touch Payroll (STP) Phase 2 is an expansion of the ATO's payroll reporting system, and it started on 1 January 2022. Under this expansion, you'll report additional information to the ATO and clarify the payments you make to your employees.

Reporting via STP Phase 2 will:

  • reduce your reporting burden if you currently report to multiple government agencies, and
  • support the administration of Services Australia.

To learn all about STP Phase 2 and the benefits, visit the ATO website.

If you set up STP after mid-December 2021, you're likely already using STP Phase 2. If you're not sure, see the FAQs below.

Moving to STP Phase 2

You'll be prompted in your MYOB business to make the move to STP Phase 2. It's a simple process and we'll guide you every step of the way.

During the move, 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.

You need to move to STP Phase 2 in 2022

MYOB has obtained a deferral from the ATO which means you have until 1 January 2023 to move to STP Phase 2. This means you can relax and make the move at a time that suits you in 2022.

See how easy it is to move

Before you begin

Have you paid an employee in the current payroll year and then either:

  • terminated the employee, and/or
  • marked the employee as inactive?

If the answer is Yes to either of these, before moving to STP Phase 2 you'll need to remove the employee's termination date (in their contact record) and reactivate the inactive employees.

Once you've moved to STP Phase 2 you can add the termination date back, and deactivate the reactivated employees.

This is a temporary requirement. We're updating MYOB to include terminated and inactive employees in the payroll details check when moving to STP Phase 2.

To remove an employee's termination date

You only need to remove the termination date from the employee's contact record but not from the STP reporting centre. If you've finalised a terminated employee, you don't need to undo the finalisation.

  1. Go to the Payroll menu > Employees.
  2. Click the employee's name to open their contact record.
  3. Click the Payroll details tab.
  4. Remove the Termination date (highlight the date and press the <Delete> key on your keyboard).
  5. Click Save.
  6. Repeat for all terminated employees you've paid in the current payroll year.
To reactivate an inactive employee
  1. Go to the Payroll menu > Employees.
  2. Click the inactive employee.
  3. On the Contact details tab, deselect the Inactive employee option.
  4. Click Save.
  5. Repeat for each employee you've paid in the current payroll year that you've made inactive.
To move to STP Phase 2

STP can be complex for some businesses, so if you need help moving to STP Phase 2 we recommend speaking to an accounting advisor. Find an MYOB partner.

  1. Open the STP reporting centre (Payroll menu > Single Touch Payroll reporting).
  2. Click Get started.
  3. Click Check my payroll information. If any issues are found they'll be listed, ready to fix.

    To fix...Do this...
    Business details
    1. Click Edit business details.
    2. Make the required changes. Details of what needs updating will be shown at the top of the screen.
    3. Click Save.
    Employee details
    1. Click the employee's name.
    2. Make the required changes. Details of what needs updating will be shown at the top of the screen.
    3. Click Save.
    4. After updating and saving the employee's details, click the link at the top of the screen to continue preparing for STP Phase 2.
    Employee income type
    1. For each listed employee, choose the applicable Income type (Salary and wages, Closely held payees, Working holiday maker, Seasonal worker program or Labour hire). If unsure, check with your accounting advisor or the ATO.
    2. If you choose Working holiday maker, also choose the employee's Home country (Country of origin).
    3. Click Save and check details to see if anything else needs fixing.
    ATO reporting categories
    1. For each listed pay item, choose the applicable Phase 2 ATO category. Learn about assigning ATO reporting categories for Single Touch Payroll.
    2. Click Save and check details to see if anything else needs fixing.
    Lump sum E payments

    If you paid a lump sum E payment that related to one financial year, specify which year the payment related to. You should also unlink the lump sum E pay item from all employees (Payroll > Pay items > Wages and salary tab > click to open the lump sum E pay item > click the remove icon next to each employee > Save). You can now repeat the above steps to move to STP Phase 2.

    If you paid a lump sum E payment that related to multiple financial years, you'll need to advise the ATO which financial years the payment related to. For all the details on how to do this, see Lump sum E payments.

  4. When no more issues are found, click Transfer business to STP Phase 2.
  5. Once you've transferred to STP Phase 2, send an update event to the ATO to make sure they have the current year-to-date payroll totals for your employees (Payroll > Single Touch Payroll reporting > STP reports tab > Send update event).
  6. You should now check the STP totals you've reported to the ATO to ensure they match the payroll figures in MYOB.

Did you remove a termination date or reactivate any employees?

Once you've moved to STP Phase 2, you can add the termination date back into terminated employee contact records, and deactivate the employees you reactivated.

To enter an employee's termination date
  1. Go to the Payroll menu > Employees.
  2. Click the employee's name to open their contact record.
  3. Click the Payroll details tab.
  4. Enter the Termination date.
  5. Click Save.
  6. Repeat for all terminated employees whose termination dates you removed.
To deactivate an employee
  1. Go to the Payroll menu and choose Employees.
  2. Click the inactive employee.
  3. On the Contact details tab, select the Inactive employee option.
  4. Click Save.
  5. Repeat for each employee you reactivated earlier.

What happens after moving to STP Phase 2?

There are many things that remain unchanged 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.

But you might notice these minor changes in MYOB:

  • your wage, deduction and superannuation pay items now show the ATO reporting category you've chosen for STP Phase 2
  • your STP reports now include the updated ATO reporting categories. Find out about viewing STP reports.
  • there's a new Send update event button in the STP reporting centre (Payroll menu > Single Touch Payroll reporting > STP reports tab > Send update event). This button sends your employees' latest year-to-date payroll totals to the ATO. Previously you could only do this by recording a zero dollar ($0) pay.

  FAQs


What payroll details are checked during the move to STP Phase 2?

What payroll details are checked during the move to STP Phase 2?

When you move from STP Phase 1 to STP Phase 2, the following details are checked in MYOB for missing or invalid information.

 What gets checked
Business information
  • Business name
  • ABN
  • GST branch number (if you have one) what is this?
  • Address

You can access this information in MYOB by clicking your business name > Business settings.

Employee details

Employees paid in the current and previous payroll year are included in the payroll check. Inactive employees are not checked.

Here is the information that's checked for your employees (accessed via the Payroll menu > Employees > click an employee).

On the Contact details tab:

  • First name
  • Surname or family name
  • Country
  • Address
  • Suburb/town/locality
  • State/territory
  • Postcode

On the Payroll details tab > Employment 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 Home country (Country code). Also check that the correct Tax table is assigned to working holiday makers based on your business's working holiday maker registration status.


Pay items

Wages and salary, superannuation and deduction pay items used in the current and previous payroll year are included in the check. You can access your pay items via the Payroll menu > Pay items.

Each of these must have an ATO reporting category assigned. By default, this is set to To be assigned, so you know what pay items still need assigning.

How to assign ATO reporting categories

How can I tell if I'm on STP Phase 1 or 2?

If you're on STP Phase 2, you'll see the Send update event button in the STP reporting centre (Payroll menu > Single Touch Payroll reporting). If you don't see this button, you're on STP Phase 1.

Clicking Send update event sends your employees' latest year-to-date payroll totals to the ATO. Previously you could only do this by recording a zero dollar ($0) pay.

What if I've moved to STP Phase 2 without considering terminated and inactive employees?

If you've already moved to STP Phase 2 but you didn't complete the above process for terminated and inactive employees (who you've paid in the current payroll year), you'll need to complete the following tasks.

1. Remove the termination date

You only need to remove the termination date from the employee's contact record but not from the STP reporting centre. If you've finalised a terminated employee, you don't need to undo the finalisation.

  1. Go to the Payroll menu > Employees.
  2. Click the employee's name to open their contact record.
  3. Click the Payroll details tab.
  4. Remove the Termination date (highlight the date and press the <Delete> key on your keyboard).
  5. Click Save.
  6. Repeat for all terminated employees you've paid in the current payroll year.
2. Re-activate employees
  1. Go to the Payroll menu > Employees.
  2. Click the inactive employee.
  3. On the Contact details tab, deselect the Inactive employee option.
  4. Click Save.
  5. Repeat for each employee you've paid in the current payroll year that you've made inactive.
3. Check employee details

For each employee whose termination date you removed and for each employee you reactivated, you need to make sure all required information exists in their contact record.

Open each employee's contact record via the Payroll menu > Employees > click an employee.

On the Contact details tab, make sure the following fields are populated:

  • First name
  • Surname or family name
  • Country
  • Address
  • Suburb/town/locality
  • State/territory
  • Postcode

On the Payroll details tab > Employment details section, make sure the following fields are populated:

  • Date of birth
  • Start date
  • Employment basis

On the Payroll details tab > Taxes section, make sure the following fields are populated:

  • 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 Home country (Country code). Also check that the correct Tax table is assigned to working holiday makers based on your business's working holiday maker registration status.

4. Send an update event

You can now send the ATO the year-to-date payroll totals for your employees. This will include the employees whose termination dates you removed and the employees you reactivated.

  1. Go to the Payroll menu > Single Touch Payroll reporting.
  2. Click Send update event.
  3. When prompted to send your payroll information to the ATO, enter your details and click Send.
5. Re-enter the termination date and deactivate employees

Finally, you can re-add the termination date to your terminated employees' contact records, and deactivate the employees you reactivated.

To add an employee's termination date

  1. Go to the Payroll menu > Employees.
  2. Click the employee's name to open their contact record.
  3. Click the Payroll details tab.
  4. Enter the Termination date.
  5. Click Save.
  6. Repeat for all terminated employees whose termination dates you removed.

To deactivate an employee

  1. Go to the Payroll menu and choose Employees.
  2. Click the inactive employee.
  3. On the Contact details tab, select the Inactive employee option.
  4. Click Save.
  5. Repeat for each employee you reactivated earlier.
Once you've completed these tasks, we recommend checking the STP totals you've reported to the ATO to ensure they match the payroll figures in MYOB.