Frequently Asked Questions
What is STP Phase 2 and why do we need it?
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. It will also help Services Australia’s customers, who may be your employees, get the right payment at the right time. For more information around all of the changes you will need to make in preparation please see https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-Phase-2-employer-reporting-guidelines.
When will MYOB be ready for STP Phase 2?
MYOB is ready for Phase 2 for new MYOB customers and in March for existing MYOB customers. There is a deferral with the ATO until 1 November 2022, so you will have time to prepare and transition to Phase 2 when you are ready.
Once I have completed the setup, will processing payroll change?
No – Once STP Phase 2 setup has been completed, processing a payroll and reporting for STP will remain the same as will EOFY Finalisation.
Where do I find out about all the new ATO Reporting Categories (disaggregation) of wages?
Please refer to the ATO for further information on disaggregation of Wages. https://www.ato.gov.au/Business/Single-Touch-Payroll/Expanding-Single-Touch-Payroll-(Phase-2)
Do we still need to lodge a Tax File Declarations once we begin STP Phase 2?
No – Once STP Phase 2 has been set up, you will no longer need to lodge TFN Declarations, however you will still need to keep a record of the form where a hard copy form is provided.
What other training will MYOB be providing on STP Phase 2?
We will be adding courses into MYOB Academy to help guide you through this change.
Will all MYOB software automatically update to STP Phase 2?
No – there will be some steps you will need to complete to update some payroll information. Once STP Phase 2 is available in your site, you can then follow the workflow to move over to STP Phase 2. If you are transitioning from another software, look out for our new feature where you can simply bring across your BMS ID which will make this process of transferring your payroll data a lot easier.
What happens if I am not ready to transition to STP Phase 2 by the end of Aug?
If you need more time to transition to STP Phase 2, you can apply for a delayed transition to STP Phase 2 reporting. See https://www.ato.gov.au/Business/Single-Touch-Payroll/Need-more-time/STP-expansion-(Phase-2)-delayed-transitions/#Employers for more information.
How does a mid-year transition affect completed pays previously reported to the ATO under STP Phase 1?
As you transition employees and pay items to STP Phase 2 Categories, you must also apply the STP Phase 2 categories to historical pay runs. This will ensure that when you process your next pay run, YTD values will be correctly reported to the ATO under the new STP Phase 2 categories. The steps are described in detail in the training course and the transition guide. Important to note that the ATO does not expect you to create new STP reports for pays completed and reported in STP Phase 1. For example, where you have analysed the ATO requirements and decided new pay items are needed to disaggregate gross payments correctly, these new items can be used in pay runs going forward only. Completed pay runs reported under the STP Phase 1 category does not need to be disaggregated and can remain unchanged. See https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-Phase-2-employer-reporting-guidelines/?page=2#Transitioning_from_STP_Phase_1_to_STP_Phase_2_reporting for more information.