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Hello,
Could you please clarify what I need to do after completing all the steps to prepare for STP Phase 2, to then start lodging pay runs and reporting Phase 2 information.
At the bottom of all the instructions is this paragraph:
Once you've set up your payroll and before you begin lodging pay events under STP Phase 2, please ensure you have created and lodged an Update Event so the ATO can validate the data that will be transitioned over to STP Phase 2.
How does the software transition from Phase 1 to Phase 2? Once the ATO accepts the Updated Event, is it done automatically, so the next Pay Run is lodged with Phase 2 information? Or do I need to tick something during the next Pay Run?
I have received a letter from ATO that I am still reporting pay events using Phase 1. So I am unsure how to make the transition.
Hello JR_Bookkeeping,
The ATO have advised to make sure customers have created and lodged an updated pay event prior to lodging pay events under the STP Phase 2, so that the ATO can validate any changes made and disaggregation of earnings was transitioned correctly. First, you have to make sure you've checked your payroll information is updated like your pay, leave and deduction category settings.
You can check this article to learn more about the changes you need to check for Single Touch Payroll (STP) Phase 2 Hub. Once you've verified the setup is correct, you can then create and lodge an updated pay event. Here's how:
Once done, the ATO should be notified of all the changes made in your payroll settings to report the STP phase 2.
Feel free to message us back if you have more concerns about QuickBooks Online Payroll. The Community is here to help you. Have a great day!
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