Table of Contents
STP Phase 2 - Disaggregation of Gross
ATO Requirements
One of the main requirements of STP Phase 2 is the Disaggregation of Gross, where the ATO requires a business to differentiate between different payroll item types and classify them accordingly. Instead of reporting a single gross amount, you will now be required to separately report the following:
- Gross
- Overtime
- Bonuses and Commissions
- Directors' fees
- Paid leave
- Allowances
- Lump Sum W
- Salary Sacrifices
Reckon Accounts implementation
New Tax tracking type
Payroll Items are reported in STP with the use of the Tax Tracking Type to group them accordingly. To accommodate the STP Phase 2 changes, the Tax Tracking Types were updated:
GROSS EARNINGS | PAID LEAVE | ALLOWANCES | LUMP SUM | SALARY SACRIFICE |
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Updated Lump Sum E
A change was also implemented to granular reporting for Lump Sum E. Each financial year relevant to the Lump Sum E amount paid must now be included in the pay event prior to finalisation of the payee Income Statement. Lump Sum E payments can report 10 historical financial years per Income Type.
We have added a new field Financial Year for Lump Sum E that contains up to 10 previous Financial Years and 3 future Financial Years.
Company file post-upgrade
No existing Tax Tracking Types will be updated during the Company file upgrade process except for the Allowances as they were updated to the new Allowance name.
STP PHASE 1 | STP PHASE 2 |
Allowances - Car | Allowance – Cents per Kilometre |
Allowances - Transport | Allowance – Award Transport Payments |
Allowances - Meal | Allowance – Overtime Meal Allowances |
Allowances - Travel | Allowance – Domestic or Overseas Travel and Accommodation |
Allowances - Laundry | Allowance - Laundry |
Allowances - Other | Allowance – Other (General) |
However, if certain Payroll Items are created anew, the default Tax tracking type has been updated for these pay items.
PAYROLL ITEM | STP PHASE 1 | STP PHASE 2 |
Holiday Pay | Gross Payments | Leave – Other Paid Leave (O) |
Sick Pay | Gross Payments | Leave – Other Paid Leave (O) |
Paid Parental Leave | Gross Payments | Leave – Paid Parental (P) |
Overtime Pay | Gross Payments | Overtime |
Bonus | Gross Payments | Bonus and Commissions |
Updating records
There are two ways to update the Tax tracking type on the employee record:
- Manually – by editing each Payroll item.
- Migration Assistant – use the utility for STP Phase 2 Setup under the Employees menu.
Messaging
For the new Tax Tracking Types, an on-screen text is displayed to provide information about the selected tax tracking. It will also include a link to the ATO website about the payment type.
IIF Files
The IIF File has been updated to recognise the new Tax Tracking Type names.
Need more help?
Ask the Reckon Community at: https://community.reckon.com/
Or Log a Support Ticket: https://www.reckon.com/au/support/
