STP Phase 2 compliance report from the ATO for Saasu
What is STP Phase 2?
Released on the 1st March 2022 as an automatic update, STP Phase 2 supports new requirements from the ATO to provide more granular payroll information. Please see the detailed ATO explanation of the changes for more information.
If you currently use Saasu Payroll you may not be required to do anything if you are using our standard built in Pay Items.
If you have created customised Payroll where you have edited or created your own unique Pay Items you need to check that transition works for you before your next pay cycle. See the section below about Automatically Updated Pay Items and the Mappings List
Automatically Updated Pay Items
Pay items you customised may have been automatically migrated to their new mapping where it contains this text.
Other Paid Leave
If the text in the Pay Item name contains:
- Annual Leave
- Carers Leave
- Carer’s Leave
- Personal Leave
- Personal Sick
- Sick Leave
- Compassionate Leave
- Accrued Leave
- Special Leave
- Birthday Leave
- Leave Pay
- Medical Leave
- Other Leave
- Other Paid Leave
- Over leave deduct
- Nurses Leave
- Study Leave
- Development Leave
Cash out of Leave in Service
If the text in the Pay Item name contains:
- Cash Out Annual Leave
- Cash Out of Leave in Service’
- Unused, Leave or A/L*
*But not if Redundancy, termination, resignation, lump sum, Type R, Type T, (R), (T) or Label A
Superannuation Guarantee Contribution (SGC)
Converted under these scenarios:
- If using the Variable Superannuation Guarantee Charge calc method
- Contains ‘SGC’ OR ‘Superannuation Guarantee’ OR ‘Super Guarantee’ text in a Custom Pay Item
- Uses ‘Variable or %’ calc method AND Rate >= 8.5% AND Name DOES NOT CONTAIN ‘Addtional’
Reportable Employer Super Contributions (RESC)
Converted under these scenarios:
- Contains ‘Additional’ OR ‘Extra’
- Contains ‘SGC’ or ‘Super’ AND Rate < 8.5%
Allowances
- Allowance wage & salary pay items, where users explicitly set the allowance type are reported accordingly.
- The remaining non-allowance wage & salary pay items will be reported as ‘Gross’ payment type.
- This means some wages & salary pay items that contains the word ‘Allowance’ in the pay item name, but don’t have the Allowance Type set, will be reported as Gross.
Mappings List
STP Phase 2 requires software developers to provide more granular information against the Pay Item components. The Mappings achieve this automatically for each report but they must be checked to be correct first. Things are more complex so nuances for types of payroll payments exist.
Format used below: Pay Item = Payment Type > Sub Type
Deduction
Salary Sacrifice = Super Salary Sacrifice > Super (S)
Union Fees = Deduction > Fees (F)
Workplace Giving = Deduction > Workplace Giving (W)
Child Support Garnishee = Deduction > Child Support Garnishee (G)
Child Support Deduction = Deduction > Child Support Deduction (D)
Employer Contribution
Superannuation Guarantee Contribution (SGC) = Super Entitlements > Super Liability (L)
Tax
PAYG Withholding = PAYGW
PAYG Withholding: Additional = PAYGW
PAYG Withholding: ETP = ETP PAYGW
PAYG Withholding: FBT & Tax Offsets Adjustment = PAYGW
PAYG Withholding: Medicare Levy Adjustment = PAYGW
PAYG Withholding: STSL = PAYGW
Wage and Salary
Annual Leave Pay = Paid Leave > Other Paid Leave (O)
Annual Leave Pay Leave Loaded = Paid Leave > Other Paid Leave (O)
Base Pay Hourly = Gross
Base Pay Hourly From Timesheet = Gross
Bonus = Bonuses and Commissions
Bonus – OTE = Bonuses and Commissions
Carers Leave Pay = Paid Leave > Other Paid Leave (O)
CDEP Salary or Wages = CDEP
Commission = Bonuses and Commissions
Compassionate Leave Pay = Paid Leave > Other Paid Leave (O)
Cash Out of Leave in Service = Paid Leave > Cash Out of Leave in Service (C)
Unused Leave on Termination = Paid Leave > Unused Leave on Termination (U)
Paid Parental Leave = Paid Leave > Paid Parental Leave (P)
Workers’ Compensation = Paid Leave > Workers’ Compensation (W)
Ancillary and Defence Leave = Paid Leave > Ancillary and Defence Leave (A)
ETP Tax Free = ETP Tax Free Component
ETP Taxable = ETP Taxable Component
Exempt and Foreign Income = Exempt Foreign Income
Long Service = Paid Leave > Other Paid Leave (O)
Lump Sum A – Unused Holiday Pay (Type R) = Lump Sum > Lump Sum A Type R (R)
Lump Sum A – Unused Holiday Pay (Type T) = Lump Sum > Lump Sum A Type T (T)
Lump Sum A – Unused Long Service Leave (Type R) = Lump Sum > Lump Sum A Type R (R)
Lump Sum A – Unused Long Service Leave (Type T) = Lump Sum > Lump Sum A Type T (T)
Lump Sum B = Lump Sum > Lump Sum B
Lump Sum D = Lump Sum > Lump Sum D
Lump Sum E = Lump Sum > Lump Sum E
Lump Sum W – Return to Work Payments = Lump Sum > Return to Work Payments (W)
Non-Deductible Allowance & Expense = Allowance > Other Allowances (OD)
Overtime 1.5x = Overtime
Overtime 2.0x = Overtime
Personal Leave Pay = Paid Leave > Other Paid Leave (O)
Directors’ Fees Directors’ = Fees
Cents per KM = Allowance > Cents per KM (CD)
Award Transport Payments = Allowance > Award Transport Payments (AD)
Laundry = Allowance > Laundry (LD)
Overtime Meal Allowances = Allowance > Overtime Meal Allowances (MD)
Travel and Overseas Accomodation Allowances = Allowance > Travel and Overseas Accomodation Allowances (RD)
Tool = Allowance > Tool Allowances (TD)
Tasks = Allowance > Tasks (KN)
Qualifications/Certiticates = Allowance > Qualifications/Certificates (QN)
Child Support
Child Support payments are reportable now in STP2. If you have created a pay item that has the word “Child Support” in it, we’ve set the mappings for them already.
CDEP
CDEP Salary or Wages has been deprecated and is not reportable
FAQ’s
If you have any questions please contact our team via a ticket created from inside the Saasu web app at Settings (COG Icon) > Contact us
I’m getting a message “Tax Scale is required field”
The ATO now requires a tax scale to be set for all payees. It is part of what’s called structured codes for reporting tax under STP Phase 2. Essentially self determining the tax and not associating it with any Tax Scale is no longer allowed.
Can you help me with my mappings?
Unfortunately this is outside the scope of software usage advice but there is any easy way to organise this with your accountant by doing the following:
- Go to Settings (COG Icon) > Settings (for this file)
- Scroll down to the Payroll section and click Manage Pay Items
- Have your advisor sign into Saasu and check this screen against the ATO required mappings -OR- Print this screen to PDF and email it to your advisor to check it.
Here’s the quick reference ATO guide that helps with this if you have some accounting skills:
https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-Phase-2-employer-reporting-guidelines/?anchor=Quickreferenceguide