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Introduction
The ATO's deadline for STP Phase 2, is 1st January 2022, however CloudPayroll will be releasing this in stages to stagger the checks and potential updates required by you.
Stage 1 is critical to ensure you are reporting correctly in the new financial year, so it needs to be actioned before your first pay run in July.
You will not be able to process a payroll with an element that has not been marked as checked on the Check Pay Elements for STP Phase 2 report (Setup > Pay Elements > Check for STP), with a pay day from July 1st. If you have unchecked elements that are not in the payroll, this will not stop you from processing a payroll. If any corrections need to be made there will be a $70 +GST fee.
Stage 1
Stage 1 is reviewing and making changes on the setup of special pay, deduction and leave elements. Currently the majority of elements are reported to the ATO as a gross payment (except itemised allowances). With STP Phase 2, each element is to be reported as their actual earnings type (Overtime Allowances, Bonus, Child Support, Annual Leave, Sick Leave etc).
To accommodate these changes, CloudPayroll has released some new earnings types, so it is important that you check the existing set up and either make the relevant changes or mark that they have been checked. If you have any elements you do not use you can click into the element and expire it by scrolling to the bottom and clicking Expire.
The STP element check report can be found under Setup > Pay Elements > Check for STP.
If you click the element code on this report, it will take you to the actual element to check:
You will notice there have been some new earnings types added please amend, if applicable.
If the Allowance (Taxable, or Non-Taxable Allowance) needs to be itemised for STP Reporting, please tick the Itemised for Tax Reporting box and select the applicable category. All Non-Taxable and most Taxable Allowances need to be reported. See Allowances & Reimbursements for more information.
If you do not need to amend the element, then you simply mark the Element Checked box and then Save the report.
This will move the pay element to the Checked section at the bottom of the page.
If you click the link under the reason column, it will take you to CloudPayroll’s help documents (that are directly from the ATO), to assist you on checking the classification and making changes if applicable.
