STP Phase 2
The process of Single Touch Payroll (STP) means that every time a payslip, adjustment or payslip edit is generated in foundU, an STP submission is created, ready to be sent to the ATO.
With Phase 2, you will now have greater visibility on what has been reported to the ATO through STP in our new reports and intuitive submission portal.
Employees with an active myGov account that is linked to ATO online services, will be able to see their year-to-date earnings, tax and super information in their Income statement. Their data is updated every time you lodge an STP submission. Employees will be able to access their EOY summaries from their myGov accounts.
In this article we will cover:
- STP overview
- Submitting via STP Phase 2
Looking for the STP Phase 1 process? Please see our helpful guide here!
The expansion of Single Touch Payroll (STP) not only increases the ATO's visibility of what employees have been paid but also reduces and streamlines interactions for both employee and employer.
With the disaggregation of Gross, expansion of Allowance and Pay Item reporting, the introduction of new Lump Sum types and near real-time integrations with Service Australia, STP Phase 2 gives employers granular reporting data, removes the need to provide separation certificates and remittance advices for Child Support deductions and garnishees and makes it easier for your employees at EOFY time.
STP Phase 2 doesn't change the payments you need to report through STP, but it does change how those amounts need to be reported.
Examples of this include:
- Paid leave types
- Salary sacrifice
- Allowances and pay items
- Lump sums payments
Visit the ATO website for more information on STP Phase 2 reporting guidelines.
At the end of the financial year, you'll need to finalise your STP data. This means you are making a declaration that you have completed your reporting for the financial year.
Once you finalise your data, your employees' Income statement in ATO online services will be marked as 'Tax ready'. The employee, or their registered agent, will use the Income statement to lodge their tax return.
For more information on finalising your STP data, please refer to our EOFY Single Touch Payroll (STP) finalisation article.
Manage your STP lodgements easily using our new Phase 2 submissions workflow!
An STP submission will be created and ready for you to submit each time a payslip, adjustment or payslip edit is generated in foundU.
Please note: The below screenshots are test data and therefore show no pay data, your platform and STP submissions will show your relevant pay data.
To submit STP submissions:
- Navigate to Payroll > Single Touch Payroll.
- Here you will see pending STP submissions per Office Code (paying entity) in chronological order by payment date ready to be reviewed and submitted to the ATO. Queued submissions will be available for review once prior submissions for the employee have been lodged.
Each STP submission will display the following information:
- Office code - Paying entity
- Branch ID
- Pay date
- Event - Type of STP submission (i.e. Pay event generated from processing payroll)
- Status - Status of STP submission (Error, Overdue or Due)
- Select 'Review' on the STP submission you would like to review and submit. This will progress the STP submission to the 'Review' step.
Tip: You can submit your STP submissions in any order.
- Select 'Details' to review the employee's STP data. Toggle between YTD and Period to view STP data for the period duration reported on the payslip. We have also added the option to export period data in CSV format to assist in STP reconciliation.
- Once you have reviewed the data in the STP submission, tick the declaration and 'Submit to ATO'.
- Once the submission is lodged, it will progress to the Submitted step. Submissions with a 'Completed' status have been successfully received by the ATO.
Tip: Here you can export your submitted/completed STP submissions to a CSV file or filter to the relevant employee or Office Code to help with STP reconciliation.
In the unlikely event that your data fails validation, you will see an 'Error' as the status of the submission. This means that the data you are lodging is not 100% complete/correct and has not passed validation.
When errors happen, you will need to resolve them by making the appropriate changes in the platform. An example of this could include changes to the Employee Profile (e.g. address, TFN details, etc).
To view STP errors:
- In Pay > Single Touch Payroll, select 'Errors' to see the STP error.
- To view the error details select 'Help'. The error details will advise what needs to be corrected in the platform for the STP submission to be lodged.
- Once the relevant changes have been made, go back to Pay > Single Touch Payroll to review and re-submit the STP submission.
Errors should be a rare occurrence. However, if you are having issues with resolving any STP errors, please contact email@example.com for further assistance.