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Wednesday Webinar Session 1 & 2

Introduction

The Single Touch Payroll (STP) Phase 2 transition guide provides the details of the additions/modifications in the Entire OnHire system that are required to be configured before proceeding with Single Touch Payroll (STP) in the STP Phase 2 enabled application.

This document aims to help you understand the requirements of STP Phase 2 reporting through the STP Phase 2 enabled application.

Things To Do

To run STP Phase 2 successfully in the Entire OnHire application, several important things must be understood, actioned, and implemented before STP processes are run .

1. Review/Update all Allowances/Additions Settings in the Masters as per ATO Guidelines along with their Remapped Codes

In STP Phase 2, all the Allowances and Additions are itemised separately, not just expense allowances that may have been deductible on the employee’s IITR. This means that allowances and additions that used to be reported as Gross for the income type must now be separately itemised in STP Phase 2 reporting.

As per ATO guidelines, reimbursement payments that are equal to the exact amount that reimburses an expense, verifiable by receipts, which was (or will be) incurred by the employee in the course of their duties must not be reported as per ATO guidelines.

Also, STP Phase 2 introduces the ability to report the deductions for Child Support Garnishee/Child Support Deduction and eliminates the need for employers to provide separate remittance advice to the Child Support Registrar while reporting through STP. However, you need to pay the required amounts directly to ATO by the date specified in your notice.

ATO has defined mandatory obligations to report Child Support amounts through STP Phase 2, click to view the detailed information.

1.1 Review Allowances and Additions Settings in Masters

You must ensure the following points before processing the STP run:

In the Allowances master, all the allowances (except reimbursements) should already be selected as Appear Separately on Group Certificates.

The Entire OnHire team will update the master settings of all the allowances and additions to be selected as ‘Appear Separately on Group Certificates’, except reimbursements (if any provided by you), in the prerequisites document after STP Phase 2 rollout.

You need to review the settings of the allowances and additions in the master after STP Phase 2 rollout.

In the Additions Deductions master, all additions should already be selected as Appear Separately on Group Certificates in Additions and Deductions master screen as shown in the figure below.

1.2 Remap Allowances and Additions Codes with New Codes as Defined by ATO

The STP Allowances and Additions codes will be remapped by the Entire OnHire team with the new codes defined according to ATO guidelines based on the data shared by you in the prerequisites document after STP Phase 2 rollout.

To review the remapping of the STP Allowances/Additions Codes for the STP:

Click STP → Allowances Mapping and the Single Touch Payroll Allowance Codes Mapping screen opens
The updated Allowances/Additions/Deduction codes provided by ATO are available in the Codes defined by ATO for Allowances/Deductions section and are already remapped with the Codes available in the System for Allowances/Additions/Deductions (based on mapping information provided by you)
You need to review the already mapped codes in the Codes available in the System for Allowances/ Additions/Deductions section

Click to view a reference guide for mapping common allowances/additions with ATO-defined codes.

1.3 Map Child Support Garnishee/Deduction

STP Phase 2 introduces the ability to report the deductions for Child Support Garnishee/Child Support Deduction, eliminating the need for employers to provide separate remittance advice to the Child Support Registrar while reporting through STP. However, you will need to pay the required amounts directly to ATO by the date specified in your notice.

For detailed information about Child Support Deductions, click the link.

In case you opt to report Child Support Garnishees/Deductions through STP in the Finance application:

Click Master → Payroll → Additions Deductions and the Additions and Deduction screen opens
For the Type as Deduction, you can either select the Child Support Deduction or Child Support Garnishee checkbox to report the child support amounts.
For deduction, select the Child Support Deduction (D) checkbox and for garnishee, select the Child Support Garnishee (G) checkbox.

When the Child Support Deduction/Child Support Garnishee option is selected, you must map the selected option in the Single Touch Payroll Allowance Codes Mapping screen. The codes defined by ATO for Deduction are mapped with System codes for deduction:

Click STP → Allowances Mapping and Single Touch Payroll Allowance Codes Mapping screen opens
Now, you need to map Codes defined by ATO for Allowances/Deductions with the Codes available in System for Allowances/Additions/Deductions
For Deduction type as Child Support Garnishee map with Code as ‘G’ as defined by ATO

For Deduction type as Child Support Deduction map with Code as ‘D’ as defined by ATO

2. Replacement of Tax File Number ‘987654321’ as it is no longer valid

The member should not report an invalid Tax File Number (TFN) that will fail to validate while processing the STP run.

You should request a replacement of the TFN Declaration from the member after confirming that the original is not valid. While awaiting updated information, you can report the member’s income using the following exemption codes:

111 111 111 – within 28 days since the request for the TFN Declaration was performed or
000 000 000 – more than 28 days since the request for the TFN Declaration was performed

In the STP Phase 2 enabled application, staff will not be able to save the TFN ‘987654321’ in the Member module once the STP Phase 2 is rolled out and will show the alert message as shown in the figure below.

Also, the system will validate the TFNs during STP processing by clicking Verify Employee Details (Mandatory). In case any member has TFN ‘987654321’, the member details will appear in the list of Invalid TFNs.

How to Generate Existing Members List having TFN ‘987654321’?

In the Staff portal application, to generate the list of the existing members having TFN ‘987654321’:

Click Reports → Member Reports → Member Detail Report and the Member Report opens
Select the filter option as the Financial Details option and click Export Members Report to Excel and the Members Detail Report is downloaded
Open the CSV file to fetch the list of members by filtering TFN ‘987654321’

3. Review Employer Worker Holiday Maker Registration Status along with the Tax Scale Set for Worker Holiday Maker Members

As per the ATO obligation, the clients must be registered as an employer of Working Holiday Maker in case of employment or planning to employ workers who hold either:

Working Holiday visa (subclass 417) or
Work and Holiday visa (subclass 462)

The new Workers Holiday Maker Tax Scales are introduced in STP Phase 2. The two new tax scales added are Workers Holiday Maker Scale - Unregistered Employer, and Workers Holiday Maker Scale - No TFN Supplied.

3.1 Client Registered as an Employer of Workers Holiday Maker

In case the client is registered as an employer of Workers Holiday Maker, review the setting of Employer Worker Holiday Maker registration status is set to Registered.

You can check the Registration Status:

Click Tools → Software Registration and the Software Registration Details screens open
In the System Settings tab, click Edit Software Registration Details
Now, in the Employer Worker Holiday Maker registration status field, select the Status as Registered and click Edit Software Registration Details. Note that by default, the setting is set as Registered in the STP Phase 2

Sliding Rate Obligations

For the Workers Holiday Maker scale, below is the Sliding Rate Obligations range applicable.

3.2 Client not Registered as an Employer of Workers Holiday Maker

In case the Client is not registered as an employer of Workers Holiday Maker, review the setting Employer Worker Holiday Maker Registration Status is set to Unregistered in the Finance application.

You can also review the Employer Worker Holiday Maker registration status in the Staff portal application:

Click the user login drop-down in the Entire Recruit application and open the Application Settings
In the Application Settings, click System Configurations
In the Other Settings, set the Employer Worker Holiday Maker registration status as Registered or Unregistered.

Sliding Rate Obligations

For the Workers Holiday Maker - Unregistered Employer tax scale, below is the Sliding Rate Obligations range applicable.

3.3 Update Tax Scale of Working Holiday Makers with TFN ‘000000000’

The Clients need to update the new Tax Scale ‘WORKERS HOLIDAY MAKER - NO TFN SUPPLIED’ for Workers Holiday Maker members having Tax File Number (TFN) as ‘000000000’ before processing the Payrun in the STP Phase 2.

The TFN '000000000' is provided in case it has been more than 28 days since the request for the TFN declaration was sent and not received.

How to Generate Existing Members List with TFN ‘000000000’?

In the Staff portal application, to generate the list of the existing members having TFN ‘000000000’:

Click Reports → Member Reports → Member Detail Report and the Member Report opens
Select the filter option as the Financial Details option and click Export Members Report to Excel and the Members Detail Report is downloaded
Open the CSV file to fetch the list of members by filtering TFN ‘000000000’

4. Update Marital Status for Members having Tax Scale as SAPTO Scale 2 - Senior Pensioners Tax Offset

As per ATO guidelines for STP phase 2, it is mandatory to report the marital status of the members having tax scale as ‘SAPTO Scale 2 - Senior Pensioners Tax Offset’.

In the Member Payroll screen of the Finance application, when the user selects ‘SAPTO Scale 2’ as the Tax Scale, a hyperlink appears to update the marital status as shown in the figure below. Click the link to update the Marital Status as Single, Married, or Illness Separated.

On selecting any one of the options, the following tax treatment code is included:

for Single → Char 2 is 'S'
for Married → Char 2 is 'M'
for Illness Separated → Char 2 is 'I'

Click ‘Save Obligations Details’ to save the Member Obligation Details.

For the existing member, the user can also update the marital status of the members having the tax scale as ‘SAPTO Scale 2 - Senior Pensioners Tax Offset’ in the Staff portal application. In the Financial Details page, when you select the Tax Scale as SAPTO Scale 2, click the hyperlink to select the marital status as shown in the figure below.

How to Generate an Existing Members List having Tax Scale as “SAPTO Scale 2 - Senior Pensioners Tax Offset”?

In the Finance application, to generate the list of the existing members having Tax Scale as ‘SAPTO Scale 2 - Senior Pensioners Tax Offset’:

Click Reports → Member → Member Finance Details and the Finance Details (Member) pop-up window opens
In the Obligation Table, select SAPTO SCALE 2
In the Report Data, select Finance and click Report and the Member Finance Details report is generated that includes the list of members with the SAPTO Scale 2

5. Review the Reason Category Mapped with the Member Termination Reasons in 'Reasons (Personnel)' Master

As per ATO guidelines for STP phase 2, it is mandatory to report the termination reason in the Reason Category for the terminated members.

In the Reasons (Personnel) Master of the Staff portal, review the Reason Category, in case the termination reason for the Subgroups selected is 'MBR TERMINATED' for the member.

6. Visa Country of Existing Working Holiday Makers

You need to mandatorily report the visa country for the employees who report to tax jurisdictions outside of Australia. This is relevant for businesses with staff having specific visas (i.e., Australian residents working overseas or Working Holiday Makers).

It is mandatory to provide the visa country for each Workers Holiday Maker so that when the STP Phase 2 reporting is enabled, users will be able to update this information immediately without any impact on STP reporting.

In the Staff portal application, the Passport Country is the mandatory field in the Visa tab for the member in the Employment Details page as shown in the figure below .

Click to view the detailed information about the Single Touch Payroll (STP) – Phase 2 .

Entire OnHire Client Support

STP Phase 2 – Transition Guide