STP Phase 2 Hub for MYOB Exo ES
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 Exo Employer Services users will need to transition to STP Phase 2 reporting before your first pay run in the 2023 financial year. To start STP Phase 2 reporting, you’ll need to upgrade your software 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 (your current MYOB Exo Employer Services version should be 2021.03).
The compliance upgrade (that includes STP Phase 2) of MYOB Exo Employer Services (2022.01) is currently available. We encourage you to upgrade and make the transition in before the busy EOFY period.
Watch our STP Phase 2 Webinar
Before you upgrade, watch our webinar to get familiar with STP Phase 2.
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
How to upgrade?
For the compliance release notes, EOFY guide and video, check out our Exo ES EOFY Hub.
Before upgrading, check that:
- There are no open pays within the system (either current or one off pays)
- All users have closed their MYOB Exo Employer Services applications
- You are running the upgrade under a Windows account that has administrative privileges
- If your payroll is installed on a server, it is NOT recommended to run this upgrade from a local PC. Please see your system administrator as this process should be performed on the server by the network administrator.
How to upgrade to MYOB Exo ES 2021.09
1. Seek assistance from your IT network administrator
If you have an IT network administrator, we recommend that you seek their assistance to complete your software upgrade for the following reasons:
- Upgrade files are sometimes blocked by, or cause warning messages from, IT security settings and software.
- Upgrade files may trigger antivirus software warnings so you may need to temporarily disable the antivirus software while the upgrade completes.
2. Download the installer for 2021.09
An online upgrade is not available for the 2021.09 STP Phase 2 version of MYOB Exo Employer Services. Instead, you will need to download the installer file called ‘austupgrades.exe’. We suggest you create a folder under Payrollv called ‘Installers’ in which to save this downloaded file.
3. Upgrade MYOB Exo Employer Services
1. Open your MYOB Exo Employer Services application.
2. Log into any one of your payroll companies.
3. Go to the Help menu and select ‘Upgrade Software’.
4. Select the installer file called ‘austupgrades.exe’ that you previously downloaded and click ‘OK’.
5. Follow the steps in the Upgrade Wizard, clicking ‘Next’ when prompted to move to the next window. Note that this upgrade process only downloads the changed and new files required for this upgrade, the download may still take several minutes to install.
6. When the upgrade is completed, click ‘Finish’.
7. MYOB Exo Employer Services is launched, and the ‘Upgrade Software’ window is displayed.
8. Use the arrow buttons to move companies between the “WILL be backed up” and “Will NOT be backed up” lists. During the upgrade, a backup will be made for each of the companies listed on the right of the screen.
Important note: If you did not take a backup before starting the upgrade process, we strongly recommend that you select all LIVE payroll companies for backup.
9. Click ‘Upgrade Now’. If you chose to back up your companies, the backup will be performed before that company’s data is upgraded. As each company is upgraded, you will see the names of the files being upgraded in the top right hand corner of your screen. Do not interrupt this process. It may take several minutes.
10. You may be prompted to ‘Convert 3.0 resource file to 6.0 format’. Click ‘Yes’.
11. Once the upgrade process has finished, you will be returned to the company selection window. You can now continue using the software in the normal way.
Note for terminal server installations: Always use ‘Install Mode’ when installing on a Terminal Server, click here for details. When upgrading a Terminal Services/Citrix server, it is possible to use the ‘Upgrade Software’ function to upgrade the installation. However, after the upgrade is complete, Network.exe must be run from the ‘Add or Remove Programs’ window to complete the upgrade. Click here for further instructions on running Network.exe.
4. Post-Installation check the release
After the installation is complete, the version numbers of all MYOB Exo Employer Services applications should be checked to see if they match the release version being installed.
To check that this release installed successfully, check the versions displayed on the ‘About’ window (Help menu > About) against what is shown in the release notes.
Considering cloud payroll?
Looking to outsource your upgrades and payroll software hosting to MYOB? Book a demo of MYOB Advanced Payroll + WFM
Watch our Exo EOFY Webinar
Get EOFY ready with our 2022 Compliance Release webinar of Exo Employer Services.
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 manually upgrade your payroll software and you will need to review the changes to your software settings to ensure that the information is being reported correctly. As additional information is required to be reported, 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.
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, Exo Employer Services 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, Exo Employer Services will report to the ATO Lump Sum E according to the financial year it relates to.
How is ‘workplace giving’ reported?
Any pre-tax deductions of the type ‘fee’ or ‘workplace giving’ will be reported to the ATO under the ‘Salary Sacrifice – other’ category.
How is the reporting of super changing?
The superannuation maintenance window has been updated with new options of ‘Salary Sacrifice’ and the Payment Liabilities options for SG contribution type are disabled and set to False.
How do you update an employee’s ID if they are rehired under a new employee code?
In some cases, it may be necessary to update employees’ STP data after their employee ID code has changed or after the business management system (BMS) used to manage them has changed.
To update employees in these cases, select Single Touch Payroll > Update using Previous BMS/Employee ID from the Pay menu. This opens a new window where you can update the employee’s Previous Employee ID.
Is the EOFY finalisation process different under STP Phase 2?
As part of processing your Finalisation after the EOFY, to update the Cessation Reasons for any employees terminated before you started STP Phase 2 reporting, there is a new Exo Employer Services screen called ‘Update Cessation Code for Historical Pays’ and you will be required to submit this information before processing your Finalisation for this financial year.
A new Pay Event Version field will be displayed on the ‘Single Touch Payroll – Finalisation’ window that tells you the version of STP the finalisation event will be submitted under – either the original STP version (2018) or STP Phase 2 (2021).
Go to our EOFY Hub for more detail on finalisation events and EOFY processes in Exo Employer Services.
10 Step Transition Checklist
This is a high-level checklist of the steps required to complete your STP Phase 2 transition using MYOB Exo Employer Services. Refer to the MYOB Exo ES Release Notes and MYOB Exo Employer Services STP Phase 2 Customer Guide for the detail.
1. Complete pays & STP submissions
Before you start STP Phase 2 reporting, you need to ensure that your STP submissions are up-to-date. STP error – submission failed status code 403 indicates that your STP certificate has expired and you first need to upgrade to 2021.03 and successfully submit your pay event under the current regime.
2. Upgrade to 2021.09
If your already familiar with STP Phase 2, the best time to make the transition to STP Phase 2 is ASAP after completing a pay to ensure you have sufficient time to complete the process between pays.
After you upgrade successfully, you should be on version 2021.09 (Help menu > About).
3. Review/Update Employer Details
Setup Payroll > Employer Details: Tick ‘Employer registration for working holiday maker’ if applicable.
4. Review/Update Payment Setup
Setup Payroll > Pay rate multipliers: Tick ‘Overtime Payment’ where applicable
Update setup for overtime related payments. Check the Payment Setup for all Overtime Pay Rate Multipliers ensuring the new checkbox is appropriately checked as ‘Overtime Payment’ and that those not considered overtime are not checked.
5. Review/Update Employees
- Income stream type as per tax scale setting
- Country code for inbound assignees and WHMs
- Tax Treatment Code
Bulk update: Pay Menu > Single Touch Payroll > STP Phase 2 – What’s New
Individual update: Employee Maintenance > Employee Details tab
New fields added to Standard Pay tab
On upgrading MYOB Exo Employer Services to 2021.09, default values will be entered for employees’ income stream types and tax treatment codes. The first time you open Exo Employer Services after upgrading to 2021.09, a window will appear, showing you an overview of the changes that have been made to each employee record:
- Ensure that Employees have appropriate Income Stream Types selected, these are generated by the Tax Classification and will automatically be populated as:
- SAW – All Salary and Wage Tax Classifications
- WHM – Working Holiday Maker Program participants (with a Tax Classification of the same)
- WHM, FEI and IAA Income Streams will require a Country Code to be inserted. Edit the employee concerned and simply press Save to initiate the screen for this to be added.
- There are new Tax Classifications for some employee categories (e.g. Actors and Seasonal Workers). Please review any employees who fall into these categories.
- A new ‘Medicare Levy Variation’ button has been added. The default is ‘None’. You can specify a levy surcharge or a levy reduction for the employee.
- On the Standard Pay screen, you can modify the Income Stream Type for individual employees. Generally, this will be defaulted to SAW (Salaries and Wages). Where necessary, it can be changed to CHP (Closely Held Payees) or IAA (inbound assignees to Australia, who will also require an STP Income Country Code).
6. Review/Update Allowances
Maintenance menu > Single Touch Payroll > Allowance Category
Maintenance menu > Allowances
7. Review/Update Deductions
Maintenance menu > Deductions
New options: ‘Child Support’, ‘Child Support Garnishee’ and ‘Salary Sacrifice – Other’
8. Review/Update Non-Cash Benefits
Maintenance menu > Non-Cash Benefits
9. Review/Update Employer/Employee Superannuation
Maintenance menu > Superannuation
New STP Reporting Type: Salary Sacrifice
10. Change Income Stream Type for Historical Pays
Pay > Single Touch Payroll > Update Income Stream Type of Historical Pays
As part of processing your Finalisation after the EOFY, you will need to also update the Cessation Reasons for any employees terminated before you upgraded to 2021.09.
The information in the Hub is general information about how to use MYOB Exo Employer Services, based on documentation supplied by MYOB Australia Pty Ltd. This information is not to be relied on as legal, accounting, financial or taxation advice. BusinessHub is not responsible for information published on other websites.