STP Phase 2 Hub for MYOB Advanced Payroll
Get ready for STP2 Reporting with BusinessHub
The Australian Taxation Office (ATO) has announced that the way you need to report your payroll information is changing this year. BusinessHub is here to help you make the transition with our Hub of resources and how-to tips.
It’s all in the timing…
MYOB Advanced Payroll users will need to transition to STP Phase 2 reporting by August 2022. To start STP Phase 2 reporting, you’ll need to enable STP Phase 2 reporting and then review/update your STP Phase 2 settings in between pay runs.
This is best done after you have familiarised yourself with the STP Phase 2 requirements and successfully submitted your last Pay Event under the current STP regime.
The 2021.1.4 release and above, of MYOB Advanced supports the new STP Phase 2 reporting structure. We encourage you to upgrade and make the transition before the busy EOFY period.
Watch our STP Phase 2 Webinar
Before you upgrade, watch our webinar to get familiar with STP Phase 2.
EOFY in MYOB Advanced Payroll
Visit our MYOB Advanced EOFY blog for a recording of our EOFY webinar, as well as EOFY processing resources for both MYOB Advanced Business and Payroll.
Need help with STP Phase 2?
Book an STP Phase 2 Transition Session with BusinessHub for personalised remote support. This includes: Up to 30 minutes of remote support through your STP Transition. Excludes: Accounting and taxation advice.
Fee: $120 + GST
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STP 2 FAQS
Will the transition to STP Phase 2 occur automatically upon upgrade?
Will the transition to STP Phase 2 occur automatically upon upgrade?
No – you will need to enable STP Phase 2 reporting on the Enable/Disable Features screen, turn on STP Phase 2 on the Payroll Preferences screen and then review the changes to your software settings to ensure that the information is being reported correctly. As additional information is required to be reported to the ATO, it needs to be reviewed by your payroll manager.
How will the reporting of payments change?
Refer to the ATO Quick Reference Guide on how to report some of common payment types through STP Phase 2.
Are Tax File Declarations no longer required?
Under STP Phase 2, the TFD information will be reported to the ATO via STP reporting, so you don’t need to lodge a TFD with the ATO. However, it is still recommended that that you retain a copy of the hard copy of the signed TFD for your (employer) records. You can print this form in MYOB Advanced Payroll.
Are separation certificates no longer required?
Yes. Under STP Phase 2, the ATO now collects data that was previously reported to Centrelink via an Employment Separation Certificate. One of the data items the ATO now needs to collect for the Department of Services is a Cessation Reason. On the Termination Wizard, MYOB Advanced Payroll will include a new field called Cessation Type where you can select the relevant cession type from the dropdown menu. There is no requirement for Employment Separation Certificates to be issued once STP Phase 2 reporting has started, but you must provide a Cessation Reason when using the Termination wizard.
How are back payments reported?
Under the current STP reporting regime, back payments were not reported via STP so you needed to provide your employees with a separate letter regarding back payments. Under STP Phase 2, MYOB Advanced Payroll will report to the ATO Lump Sum E according to the financial year it relates to.
- For past payments, during the transition use ‘Update Lump Sum E Financial Year’ that lists all lump sum E payments, and allows you to select which year the payments relate to.
- Going forward, use the new option in the pay where lump sum E pay items are being processed to capture the FY the payment relates to.
Is the EOFY finalisation process different under STP Phase 2?
There will be no changes to how you finalise your EOFY in MYOB Advanced Payroll. We go through finalisation events in more detail at our EOFY webinar on our EOFY Blog>
"Phase 2 ATO Category cannot be found in the system" error when attempting to change STP categories
This error occurs when the STP Phase 2 Get started checkbox hasn’t been selected and saved on the Payroll Preferences screen.
- Go to the Payroll Preferences screen (ScreenID: MPP1100)
- On the STP PHASE 2 tab, select the Get started checkbox.
- Click the Save icon at the top-left of the screen.
- The icon will turn grey when the save is successful.
- Click Update Pay Item ATO Categories and continue the process of transitioning to STP Phase 2
10 Step Transition Checklist
This is a high-level checklist of the steps required to complete your STP Phase 2 transition using MYOB Advanced Payroll. Refer to the Release Notes for the detail.
1. Complete pays & STP submissions
You will need to make the switch to STP2 in between pays.
The ATO expects you to only report through STP2 once enabled. After you tick ‘Get Started’ on the STP Phase 2 tab of the Payroll Preferences screen, all STP requirements will need to be met before running the next STP report.
2. Enable STP Phase 2
To make the transition, go to Payroll Preferences > STP Phase 2 and tick ‘Get Started’.
If you do not see the ‘STP Phase 2’ tab, enable STP Phase 2 on the Enable/Disable Features screen.
3. Update Employer Details
This screen allows you to update employee details in bulk. All ‘Individual Non-Business’ employees get converted to ‘Salary & Wages’ by default via the ‘Change payment summary types to Income types’ action.
The ATO provides more income types. Make any changes with the option dropdowns. You can fill in additional fields, which help determine the employees’ new Tax Treatment Codes. After you have made the changes, use the ‘Apply Income type changes historically’ action.
4. Update Payment Setup
This screen will help you update ATO categories faster. Click ‘Change Phase 1 ATO categories to Phase 2 ATO Categories’. This process will keep all supported categories, add new categories where a match is found automatically, and prompt you where pay items require user review. You should review the ATO guidelines to make sure your pay items are categorised correctly. After the changes are made, use the ‘Apply Phase 2 Categories historically’ action.
To satisfy ATO requirements, you may be required to create new pay items to disaggregate gross income. Refer to the ATO website to check if your pay item setup meets the ATO guidelines.
5. Update Lump Sum E Financial Year(s)
Use this screen to add a Financial Year to payments categorised as Lump Sum E in bulk.
6. Update Cessation Reasons
If any employees have been terminated previously, but will have STP reports submitted after the termination, you will need to add a cessation reason.
7. Update Pay Item Type ATO Categories
8. Update Companies registered for Working Holiday Maker
9. Run Validation
When you have reviewed and updated your payroll data, run the ‘Check Data’ validation process to see if all Companies, Employees and Pay Items meet basic ATO requirements. Follow the link on each line of errors and warnings, make your changes, then validate again to confirm that they are resolved.
10. Check STP Submission Status on your next pay
Refer to the Manage STP Submissions screens to check that your next pay event has submitted successfully. Use the ‘Check Submission Status’ button to check the status. From the 2021.1.4 release onwards, the status descriptions for STP submissions have been simplified. There are now only three statuses: Submitted, Accepted and Failed.