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FAQ on STP Phase 2
FAQ on STP Phase 2

Read up on Frequently Asked Questions (FAQs) on STP Phase 2 in Payroller

Jenny Park avatar
Written by Jenny Park
Updated over a week ago


Frequently asked questions (FAQs) on STP Phase 2 in Payroller include:


What is STP Phase 2?

STP Phase 2 is the expansion of the ATO's Single Touch Payroll reporting.

Under these changes, you will no longer need to manually report information about your employees to multiple government agencies.

Your existing reporting and payroll processes stay the same but Payroller will be sending more detailed information about your business to the ATO.

You already give us most of this information when you set up your employees and create pay runs.

However, you are required to do a one-time update for existing employees to switch to STP Phase 2. If you are a new user this update will have already occurred when you sign up

You must be reporting with STP Phase 2 by 1 July 2022.


What are the new features of STP Phase 2?

With the release of STP Phase 2, the following new payment types are available:

  • Director’s fees

  • Child support

  • Workers compensation

  • Paid parental leave

  • Ancillary/defence leaves

  • More allowance types, including award transport payments, cents per kilometre, task, laundry, overtime meal, qualification, travel, tool, and other.

You can also indicate that you have registered for the Working Holiday Maker scheme and indicate closely-held payees.


What do I need to do to be STP Phase 2 ready?

STP Phase 2 is available for all users of Payroller you do not have to do anything for now. If you are an existing user you will see a pop-up when you log in on the Payroller website to fill in a few additional information for your employees, and then you will have successfully transferred over to STP Phase 2. If you are a mobile app user please use the mobile app version android 0.4.2.0 or ios 3.0.14 and onwards to access the features of STP Phase 2.

If you are a new user, your Payroller account will automatically be set on STP Phase.

STP Phase 2 deadline has been extended to the 30th of June 2022


I don't see any option to update to STP Phase 2, what do I do?

If you have received an email that STP Phase 2 is available on your account but you have not received a pop-up to enter additional tax information please check whether your employees have been activated by checking the tax section of the employee card. If you are a mobile app user please use the mobile app version android 0.4.2.0 or ios 3.0.14 and onwards to access the features of STP Phase 2.


How do I activate STP Phase 2?

STP Phase 2 is available for all Payroller users. For existing users, you will also receive a pop-up when you log in to your Payroller account which will ask you to fill out additional tax information to activate STP Phase 2.

For new users your account is automatically set to STP Phase 2.

If you are a mobile user, you will need to download the newest version of the app; android 0.4.2.0 or ios 3.0.14 and onwards. When you open the app, for existing users, you will also receive a pop-up asking you to enter additional tax information so you can switch to STP Phase 2.

If you sign up to Payroller after STP Phase 2 has been released, your reporting will be set to STP Phase 2 and you won’t need to fill out any pop-ups.


How do I know that I have successfully activated STP Phase 2?

You will be able to identify whether your account is currently on STP Phase 2 by the Tax Section of your employee card an example of STP Phase 1 and STP Phase 2 has been provided below. If you are a mobile user, you will need to download the newest version of the app; android 0.4.2.0 or ios 3.0.14 and onwards.

STP Phase 1 - has TFN declaration and four additional information check points

STP Phase 2 - Income tax type field, three additional information checkpoints, and no TFN declaration

STP Phase 1 - has TFN declaration and four additional information check points

STP Phase 2 - Income tax type field, three additional information checkpoints, and no TFN declaration


Why do I need to move to STP Phase 2?

STP Phase 2 is the expansion of the ATO's Single Touch Payroll reporting. To continue to be compliant with your STP reporting obligations, you must switch to STP Phase 2 by 1 July 2022. You can apply for further extensions with the ATO.


Once I convert to STP Phase 2 can I change it back?

Once you have activated STP Phase 2 you will not be able to change it back. There are no additional obligations or changes under STP Phase 2 once you have set the employee's tax components. If you have signed up for STP Phase 2, this will not cause any issues to your reporting obligations as the ATO will consider STP Phase 2 from the pay run that was first submitted under STP Phase 2.


What happens to the pay runs I submitted on STP Phase 1? Do I need to edit and resubmit?

When you switch to STP Phase 2, your pay runs will automatically be converted to the new reporting format. You are not required to edit and/or resubmit them.

If you have ceased reporting or you will not be processing a pay run after the STP Phase 2 start date, you do not need to switch to STP Phase 2 or resubmit your old pay runs.


If I previously submitted the new categories on STP Phase 1 do I need to change it to add the specific categories on STP Phase 2?

STP Phase 2 categories only apply from the date STP Phase 2 has been activated so you do not need to edit previously submitted categories in the new version. However, if you would like to do this for your record-keeping, you can do so.


The TFN declaration has disappeared. How do I declare my employee's TFN?

With the release of STP Phase 2, you will no longer need to submit a TFN declaration as this information is already reported through STP Phase 2 and your reporting obligations have been met.


My employee is not listed in the pop-up for STP Phase 2

Your employees will not be included in the STP Phase 2 pop-up if they are currently deactivated or they have already been updated. If you need to include this employee in your STP Phase 2 reporting, you can activate them in the People section and the pop-up will appear for you to update their details.


Can I add negative balances to my payroll?

You can add negative balances to all areas of the pay run but the total gross must be 0 or greater. If you attempt to submit STP for a pay run with a negative gross you will receive an error message and will not be able to proceed until the pay run has been resolved.

Discover more tutorials & get the most out of using Payroller

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