Getting ready for Phase 2
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 late August 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.
Will all MYOB software automatically update to STP Phase 2?
No – there will be some manual steps you will need to complete to transition to STP Phase 2. You will need to manually upgrade your payroll software. Configuring your payroll will be automated as part of the upgrade, but you should complete a manual review of the updates that have been made. 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.