Additional STP Phase 2 checks

Additional STP Phase 2 checks

The STP Phase 2 Ready Checklist guides you through the information you needed to add, review or edit to employees and pay items.

There are a couple of additional updates that you may need to look into in regards to the Tax Treatment code.

The Tax Treatment field is a new reportable field that is populated based on selections made in the Employee Tax Details.  This six character code, automatically generated as part of the ATO submission, represents a summary of your employees current tax position and each character in the code represents a different factor that affects how the employee is taxed.

Registered Employer for Working Holiday Makers (WHM)

If you are registered as an employer of WHMs, tax is calculated for employees at a different scale to those company's not registered. This detail is reported to the ATO as part of the Tax Treatment code for any Working Holiday maker employee.

You will need to firstly determine if you are registered with the ATO, and if so, you will need to indicate this by selecting the checkbox, Registered employer of working holiday makers, under Settings and Company Details.

Learn more about Registered Employer for WHM here

What you need to do
  1. Select Company Details from the Settings menu.
  2. Select Edit company details
  3. If you are a registered employer for WHM, select the checkbox

Reporting Commissioner’s instalment rate

As part of the STP Phase 2 reporting requirements, the ATO require additional details on employees that are assigned the tax scale Voluntary/Flat rate. You will to report if they are with or without the Commissioner’s instalment rate (CIR).

This is reported automatically through the Tax Treatment code and setup within the relevant employee's Tax details tab.

What you need to do
  1. Select Employees and click on any employee assigned to the tax scale Voluntary/Flat rate
  2. Go to the Tax tab and select Edit
  3. Select the checkbox, Employee is using the Commissioner's installment rate (CIR)
  1. Select Done


Need more help?

Ask the Reckon Community at: https://community.reckon.com/

Or Log a Support Ticket: https://www.reckon.com/au/support/

How did we do?

Preparing Other Leave for Single Touch Payroll Phase 2 - Payroll Web

Related Articles

Single Touch Payroll Phase 2 Overview
STP Phase 2 Migration Assistant
STP Phase 2 - Disaggregation of Gross
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