STP Phase 2 is coming up, and we've provided a guide to prepare for the upcoming changes.
Need more information on what STP Phase 2 is? Find out here.
What do I need to do to prepare for STP Phase 2?
The tasks you need to do depends on the payroll information you currently record in QuickBooks Online Payroll powered by Employment Hero. For most businesses, there will be changes you need to make, detailed in the following guides:
- Update pay categories
- Update leave categories
- Update deduction categories
- Review employee tax file declaration information
You'll also need to follow the guides below IF they apply to your business:
- If you have employees that are closely held, under foreign employment, an inbound assignee to Australia, labour hire or other, update their income type in the employee's settings
- If your business terminated an employee from 1st July 2021, provide a termination reason
- If you have working holiday maker employees, classify them correctly and state their country
- If you have employees working in another country, provide their country of work
We've also provided a comprehensive article covering all the above changes on one page that can be accessed here.
Once you've set up your payroll and before you begin lodging pay events under STP Phase 2, make sure you have created and lodged an Update Event so the Australian Taxation Office (ATO) can validate the data that will be transitioned over to STP Phase 2.
Want to make sure you're ticking all of the boxes?
Download our STP Phase 2 readiness checklist and ensure that your business is ready for the change.