Table of Contents
STP Phase 2 - STP Tax Category in Reckon Accounts 2023
ATO Requirements
The STP Tax Category is another tax category that identifies the employee's income type that helps ATO determine if the payee is taxed correctly. This is another component used for generating the Tax Treatment Code — Character 1 and 2. The supported categories are:
- Regular employees
- Actors
- Horticulturists and shearers
- Seniors and Pensioners
- Working Holiday Makers
- Seasonal Worker Programs
- Foreign resident
- No TFN
- ATO-defined
- Voluntary agreement
Reckon Accounts implementation
For regular employees – that are not under the roles above – you can just set their Income Type eg. SAW or CHP and not make a selection under STP Tax Category.
New field for STP tax category
A new STP Tax Category dropdown is available within the employee records in Reckon Accounts 2023 by going to the Payroll and Compensation Info. This field is only applicable for Income Type(s):
- SAW – Salary and Wages
- CHP – Closely Held Payees
All categories are supported and has to be explicitly selected apart from ATO-defined categories:
ACTOR | HORTICULTURIST AND SHEARERS | SENIORS AND PENSIONERS |
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The STP Tax Category fields does not affect any payroll calculation and are used for STP Phase 2 reporting purposes only. Therefore, continue to use the relevant Tax Code for each employee.
For example, an STP Tax Category: Actor – TFT does not require you to change your Tax Code to
2-TFT. If no Tax scale is appropriate, use 8-No TaxC and enter the correct Tax Rate.Relationship between Tax Category and Tax Codes
TAX CATEGORY | DESCRIPTION | TAX CODE |
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| 8-No TaxC |
Horticulturists/Shearers – TFT | Horticulturists or Shearers with TFT claimed | 8-No TaxC |
Horticulturists/Shearers – TFT | Horticulturists or Shearers with TFT claimed but no TFN | 4-No TFNr |
Horticulturists/Shearers – Foreign Resident | Horticulturists or Shearers that are Foreign resident | 8-No TaxC |
Horticulturists/Shearers – Foreign Resident | Horticulturists or Shearers that are Foreign resident but no TFN | 4-NoTFNn |
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— Schedule 3 – Tax table for actors, variety artists and other entertainers
— Schedule 2 – Tax table for individuals employed in the horticultural or shearing industry
— Schedule 9 – Tax table for seniors and pensioners
Company file post-upgrade
No STP Tax Category will be assigned to any new or existing Employees after the Company File was upgraded.
Updating records
There are two ways to assign the STP Tax Category on the employee record:
- Manually – by editing each employee record.
- Migration Assistant – use the utility for STP Phase 2 Setup under the Employees menu.
IIF Files
The STP Tax Category was added to the IIF file with the header name: STPTAXCATEGORY.
Need more help?
Ask the Reckon Community at: https://community.reckon.com/categories/reckonaccounts
Or Log a Support Ticket: https://www.reckon.com/au/support/
