Single Touch Payroll Phase 2 FAQs

What is Single Touch Payroll Phase 2?

Single Touch Payroll (STP) is the way you report your employee’s tax and super information to the ATO.

In the 2019-20 Budget, the Federal government announced that Single Touch Payroll (STP) would be expanded to include additional information.

The expansion of STP, also known as STP Phase 2, will reduce reporting burden for employers who need to report information about their employees to multiple government agencies.

What is TASS doing about STP Phase 2?

In response to STP Phase 2 TASS have made the following changes to the Knowledge Base and its software:

Confluence Page	Description
Payroll HRM > Payroll > Pay Run Processing > Single Touch Payroll Processing	The 'STP Events List' screen has been updated to include 'Child Support Deductions' and 'Child Support Garnishees'. The 'Employee Event Details' screen has additional collapsible panels. 'Creating an Update Event' has been updated to include information about an identifier from a previous payroll system.
Payroll HRM > Payroll > Payroll Setup Information > Payroll Setup > Paycodes Tab	The 'Paycode Details' screen has divided into three sections. The new third section is titled 'Single Touch Payroll Reporting' with the following fields 'Payment Type', 'Allowance/Deduction Type', 'Leave Type', 'Salary Sacrifice Type', 'Lump Sum Payment', 'ETP Paycode', 'ETP Component', 'ETP Type Code', 'Bonuses and Commissions', 'Directors Fees' and 'Overtime'.
Payroll HRM > Payroll > Payroll Setup Information > Payroll Setup > Tax Scales Tab	The 'Tax Scale Details' screen has been updated.
Payroll HRM > Payroll > Employee Information > Employees	The 'Check Employee Data' button runs a program to check that data on employee records matches ATO requirements. The employee fields that are checked by this program have been updated. This includes 'Surname', 'Address Line 1', 'Town/Suburb', 'State', 'Country', 'Postcode', 'Date of Birth', 'Employment Status', 'Tax File Number', 'Reason for Termination', 'Tax Free Threshold', 'Study Training and Support Loan Debt', Residency Tax Status', 'Country of Origin', 'Medicare Levy Exemption', 'Medicare Levy Reduction' and 'Medicare Levy Surcharge'. In 'General Tab', the description for the Date of Birth and Termination Reason have been updated. The 'Tax & Bank Tab' has been updated. The screen is divided into three sections. 'TFN Declaration Details' has been significantly updated to include a number of new fields. The 'Tax Details' section has also been updated.
Payroll HRM > Payroll > Payroll Setup Information > Payroll Setup	The 'Check Payroll Setups' button runs a program to check that payroll setup data matches ATO requirements. The paycodes checked by this program have been updated. This includes 'ETP details', 'Lump Sum A details', 'Lump Sum E details', 'Paycodes with an Allowance Type of Other", 'Lump Sum Payment details', 'Paid Leave details' and 'Salary Sacrifice details'.
Payroll HRM > Payroll > Pay Run Processing > Pay Run Reset	The 'Check Payroll Setups' button runs a program to check that payroll setup data matches ATO requirements. The paycodes checked by this program have been updated. This includes 'ETP details', 'Lump Sum A details', 'Lump Sum E details', 'Paycodes with an Allowance Type of Other", 'Lump Sum Payment details', 'Paid Leave details' and 'Salary Sacrifice details'.
How to Complete STP Finalisation	The checklist has been updated to include a new Step 2 - Identifiers from Previous Payroll System. The description for Step 4 has also been updated.

When do we need to implement STP Phase 2?

The ATO has granted TASS a delayed start date of 31 March 2022 for STP Phase 2. You must commence STP Phase 2 reporting by the first payday after 31 March 2020.

What you need to do?

Follow the checklist 'How to Enable Single Touch Payroll Phase 2' to update to STP Phase 2.