Prepare for STP Phase 2 with KeyPay

Phase 2 of STP aims to remove the requirement for manual reporting to multiple government agencies.

To achieve this, more complex reporting is needed and some preparation needs to be done in KeyPay in order to prepare for this roll-out. To commit to the next Phase 2 of STP, with KeyPay you have two options:

  • Opt out now to not commit to Phase 2 of STP.  To do this you need to advise PBT before 15th January 2022 or you will be automatically opted in.
  • Wait until 31st March and automatically opt-in.

Either way, there are some modifications required to the settings of KeyPay in preparation.  You may need assistance from PBT to do this.

A brief summary of the changes are as follows:

  • Termination reason is now mandatory –  KeyPay has already built this functionality for termination reason reporting in preparation for Phase 2.
  • Child support garnishee/deduction amount will now be reported on via a pay event eliminating separate reporting.
  • Disaggregation of gross – With Phase 2, gross earning components will now be itemised separately to streamline the different income assessments required by different government agencies.
  • Income Stream Collection/Working Holiday Makers – Payments need to be classified to the ATO by income type, payment type and potentially a country code.
  • Tax File Number Declaration – Phase 2 will incorporate employee tax data via STP reporting.  Tax declarations will no longer be submitted as a separate process to the ATO.
  • Treatment Codes – A 6 character tax treatment code will be introduced to indicate what PAYG tax scales and other information related to the employee to determine the withholding amount.
  • Lump Sum E letters The Lump Sum E letters will no longer be required because this information will be supplied in the pay event prior to the finalisation of the payee Income Statement.
  • Transitioning employees from another payroll system – When businesses change from one payroll system to another, the BMS ID/payee IDs can be entered as per the previous payroll solution.  The ATO will link the information together to ensure only one Income Statement is reported for each employee.
  • Paid Leave – Paid leave will be reported separate from Gross earnings using itemised leave type codes.
  • Allowance items – To meet the new reporting requirements for Phase 2, additional allowance type codes will be added.

For a more comprehensive overview of the requirements for Single Touch Payroll Phase 2, visit the KeyPay Website.

You can also download the KeyPay STP Phase 2 Checklist.

In order to prepare for these reporting requirements, KeyPay has made changes to ensure that the gross amounts are reported correctly.  

Let Us Help You!

Let us help you!

For help preparing your KeyPay system for STP Phase 2, call us on 1300 720 767 or complete our online contact form.

Subscribe to Our Newsletter

Keep up with our always upcoming product features and technologies.
Enter your e-mail and subscribe to our newsletter.

Interests
Progressive Business Technologies
/*****Jquery Redirect to URL After Form submission*****/