talk me through phase 2 categories im confussed

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The pay categories in QuickBooks Online Payroll have been updated to the most recent payment classification information. You'll have to review the payment classification mappings under the Pay Categories section. Here's how:

1. Click on the Employees tab.
2. Click on Payroll Settings.
3. Click on Pay Categories.
4. Click on each pay category you're using to review the payment classification.

The pay categories payment classification is automatically updated in the Single Touch Payroll Phase 2 so no further actions needed on your end. If on the event you've created your own pay categories, double check each category to review if the payment classification is applied.

You can check this article to learn more about how to Update pay categories for STP Phase 2 and Single Touch Payroll (STP) Phase 2 Hub.

Feel free to post a comment below if you have more questions. We're here to help you. Have a nice day!