We’re officially on the last leg of the 2021-2022 financial year.
If you want to kick off the new financial year with a clean slate, then now is the time to get your ducks in a row.
For MYOB customers, this means getting ready to transition from the first phase of Single Touch Payroll (STP) to STP Phase 2 (STP 2).
We know EOFY is a busy time for business leaders. Between finalising this year’s paperwork and planning for the year ahead, there’s a lot to do.
But by taking the time to prepare for your STP 2 upgrade now, you’ll be setting yourself up for a seamless transition on July 1.
Remind me - what's STP2?
STP 2 is the latest expansion of the ATO’s payroll reporting system. STP 2 means employers must be more detailed in how they report earnings to the ATO. It also means you won’t have to report manually to any other government bodies.
With STP 2, some things will need to be reported separately or with more detail – commissions, paid leave, and child support are just a few of the arrangements that will be reported differently.
STP 2 also means more streamlined reporting. You won’t need to lodge employees’ tax file number declarations to the ATO, and the ATO will notify employees if they’ve provided you with incorrect information. The ATO will also share your payroll information with Services Australia so you don’t have to. These are just a few ways that STP 2 is designed to improve the reporting process.
When did STP2 kick-off?
The mandatory start date for STP 2 was January 1, 2022. But as a MYOB customer, you have a little longer. MYOB has been granted a deferral, which means you officially don’t need to begin STP 2 reporting until January 1, 2023.
But why wait? MYOB’s STP 2 platform is ready for you now. There's no better time to make the transition than the start of the new financial year.
I want to start using STP2 from July 1. How can I prepare?
To get yourself ready to start using STP 2 from the beginning of the new financial year, here’s what to do:
Step 1
Any time prior to transitioning to STP Phase 2, complete a readiness check.
- Go to the STP Reporting Centre and select ‘Get Started for STP Phase 2’.
You’ll be prompted to continue in a web browser. If it isn’t already, you’ll be prompted to put your company file online before moving to STP Phase 2.
- Click ‘Go to Browser’
If you're prompted to sign in to your MYOB account:
Sign in using your MYOB account details (email address and password).
- Go to the Payroll menu > Single touch payroll reporting.
- Click Get started at the top of the screen.
- Click Check my payroll information. If any issues are found they'll be listed, ready to fix.
Complete the information as required. Don’t select ‘Transfer business’ just yet. This will be done after the EOFY STP Finalisation has been completed.
Step 2
After the final pay in June has been processed, complete the EOFY STP Finalisation process by July 14.
Step 3
Before the first pay in July can be processed, complete a final readiness check using the process listed in Step 1 above.
Step 4
When no more issues are found, click Transfer business to STP Phase 2.
Step 5
Once you've transferred to STP Phase 2, click Send update event in the Single Touch Payroll reporting centre to make sure the ATO has the current year-to-date payroll totals for your employees.
Step 6
You should now check the STP totals you've reported to the ATO to ensure they match the payroll figures in MYOB.
You can now return to AccountRight, or continue using AccountRight in a web browser.
We're here to help you
We want to help you make this transition to STP Phase 2 as smooth as possible. Our team are available to help you with your STP and STP Phase 2 implementation requirements. Please get in touch with your trusted Ulton Advisor on (07) 4154 0400 if you have any questions.
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