STP Phase 2 - PP

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This discussion was created from comments split from: ๐Ÿšจ IMPORTANT - Payroll Premier 2023/24 tax issue - SOLVED โœ….


  • JANE_9714211
    JANE_9714211 Member Posts: 57 โœญโœญ

    I'm trying to get ahead of the STP2 launch before it becomes available in August and would like to know the following:

    1) Member Voluntary - What tax code is used for this? Is it (Type S - Salary Sacrifice) or ( Type O - Other) This is a little confusing as Member Voluntary isn't reported the same as Salary Sacrifice in STP1.

    2) If an employee has a HELP or STSL debt but no money is deducted from their pay, do you choose (S) when setting up their six character treatment code or (X)?

    3) If an employee has a second job what tax character code do you use for their six character treatment code? Is it just (R) - regular or something else?

    4) Payroll ID- Is it necessary to change everyone's payroll ID in STP2? For example: Someone has a payroll ID 1234 in STP1. Would I need to add an extra number when setting up STP2 for example 12345? I think I saw somewhere STP1 and STP2 payroll number needs to be different from each other when reporting via Reckon Customer Portal. As Payroll Premier will by a hybrid of STP reporting this financial year.

    Thanks in advance.

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,092 Community Manager Community Manager

    Hi @JANE

    I'll try to add some background on what to expect with the Payroll Premier upgrade that is coming soon, in regard to STP Phase 2 specifically.

    Once your data from your Payroll Premier file(s) have been transitioned over to Reckon Payroll, there will be an STP Phase 2 Checklist that will allow you to bulk update your employee and pay item information to STP Phase 2 requirements. The tax treatment code is automatically generated based on the selections you make for your employees.

    I can't advise you on what specific tax codes you should be applying/using for your employees since I'm not an accountant/tax agent so I'd recommend having a chat with your accountant in regard to that, however in regard to point 4, you do not need to change any employee numbers within the software and in fact, I'd strongly recommend not doing that to avoid any duplication issues. A mix of STP Phase 1 & STP Phase 2 submissions under the hybrid disaggregate method is perfectly ok and accepted by the ATO.

  • JANE_9714211
    JANE_9714211 Member Posts: 57 โœญโœญ

    Hello Rav,

    Thank you very much for answering my questions to the best of your knowledge.

    Look forward to hearing about the background information of what to expect with STP2. I'm trying to learn as much information as possible before the August launch.

    Kind Regards.