Preparing Employees for Single Touch Payroll Phase 2 - Payroll Web

Employees

In STP Phase 2, you are required to send additional details about your employees to the ATO.

  • Income Stream Code - Each amount you pay to an employee will now be assigned to an income type in STP Phase 2.
  • Employment type - This field currently exists, however the options have varied.
  • Home Country - The country of tax residency of any employees you have that are on the Working Holiday Maker tax scale.
  • Tax Treatment Code - a 6 character code is automatically generated for you based on the selections made within the employee tax screen.

Read the ATO guidelines for more information.

Adding the new fields in the STP Phase 2 Ready Checklist

To make the process easier, we display employees that require action. These employees will be displayed at the top of the grid and highlighted with the exclamation mark.

What you need to do
  1. Select Employees from the STP Phase 2 Ready Checklist
  2. Select the INCOME STREAM CODE drop down and select the relevant code for the employee
Options available are dependent upon the employee's tax scale

- Where the tax scale is Voluntary Agreement, only Voluntary Agreement is available
- Where the tax scale is Working holiday maker, only Working holiday maker is available
- Where the tax scale is Seasonal worker programme, only Seasonal worker programme is available
- For all other tax scales, Salary and Wages or Closely Held Payees is available
  1. Select the STP PHASE 2 EMPLOYMENT TYPE drop down and select the relevant earning type
Apprentice and Contractor are no longer valid Employment types
  1. Select the HOME COUNTRY the drop down for employees that are on the Working holiday maker tax code

To simplify the process

We have provided the options on each of the pages, to simplify the process.

  1. Displaying how many employees need action
  2. A link to the relevant ATO guidelines page
  3. Quick steps on what you need to do
  4. Show all employees - toggle between displaying all employees within your book and those that require action
  5. Filter - you can enter an employees name and search will begin once you enter the first character
  6. Bulk update - you can select the checkbox against the relevant employees which then enables the Edit Items button. Selecting this opens a draw and allows you to select the option for the selected employees.
    Note - the Home country will only be available in the bulk update when all employees require this data.
  7. Sort - ability to select the column heading to sort the column. This is only available on read only columns

Adding the new fields in the Employee profile

The STP Phase 2 are displayed within the employee profile and in the employee onboarding wizard.

What you need to do
  1. Select Employees from the top navigation menu
  2. Select Edit against the Employment details section. The Edit employment details drawer is displayed and the STP Phase 2 employment type field is available
  1. Select the employee's Tax tab and select Edit. The Edit tax details drawer is displayed and the new STP Phase 2 income stream code field is available. Only the relevant selections are displayed, depending upon the employee's tax scale. For example, if the employee is on tax scale 2, tax free threshold claimed, then only Salary and Wages or Closely held payees will be available for selection.
Note - if the employee is set to the tax scale Voluntary flat rate, a new option is displayed, Employee is using the Commissioner's instalment rate (CIR). This is used as part of the automatically generated Tax Treatment code.
  1. The new STP Phase 2 home country field will be displayed for any employee's that are on the Working holiday maker tax scale and the STP Phase 2 income stream code field will default to Working holiday maker.


Need more help?

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

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

How did we do?

How to prepare for Single Touch Payroll Phase 2 - Reckon Web

Preparing Earnings for Single Touch Payroll Phase 2 - Payroll Web

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