STP Phase 2 incorporates a greater level of detail in the STP reports submitted to Colladium. This added detail will require a few setting adaptations after receiving the STP Phase 2 update.
Colladium Change
The only change to Colladium is that you will need to select 2020 for using STP 2
Accounting Value Settings:
- Ensure the option "Single Touch Payroll" is set to "Yes"
- Ensure the correct option is set against "Registered to employ WHM workers"
Company Details
Under Company Details there are two fields that relate to STP:
- BMS Identifier - Will be your unique ID that identifies to the ATO who you are and what software you use.
- Previous BMS Identifier – Will be used when moving from one payroll product to another, as each BMS ID needs to be unique to a payroll platform.
Creating Overtime Shift Types
Overtime will need to be set against the Types Menu Tab "Shift Types"
When Overtime is ticked, the default will be "No" for Superannuation accruals, this can be overridden if you are paying superannuation on overtime rosters.
Allowance Types
Allowances will require the correct encoding for STP Phase 2, you will need to replace any existing allowances configured and begin using the new allowances from the first pay run that will be using the STP Phase 2 standard. The Types have additional coding attached to them to remove the need for you to manually assign a coding to each and every allowance you assign.
As instructed in previous updates - You cannot process Overtime via allowances, this will result in a inaccurate submission to the ATO.
- Car: CD (Cents per KM)
- Transport: AD (Award Transport Payments)
- Laundry: LD
- Meals: MD (Overtime Meal Allowances)
- Travel: RD (Domestic or Overseas Travel Allowances and Overseas Accommodation Allowances)
- Tool Allowances: TD
- Tasks: KN
- Qualifications Certificates: QN
- Other: OD
Single Touch Payroll Tab - Staff Profile
To Prepare - Your internal staff need to know the difference between Income Stream Types and Employment Basis Codes. Please use the ATO resources or your professional accountant for guidance. All staff will require these fields be completed.
- STP Exempt – Excludes from STP reporting – Consult with your accountant or the ATO prior to excluding an employee from STP.
- Previous Payroll ID – Typically used for previously terminated employees returning to your employment.
- Employment Basis Code - Full time, Part time, Casual, Labour hire, Voluntary agreement, Voluntary agreement, Death beneficiary, non-employee
- Cessation Type Code: Voluntary Cessation, Ill-health, Deceased, Redundancy, Dismissal, Contract Cessation, Transfer
- Income Stream Type: SAW, CHP, IAA, WHM, SWP, FEI, JPD, VOL, LAB, OSP
- Country Code – If left blank, the default of AU will be applied when saving.
Termination Payments
Each termination payment component will require it's own line entry, so taxable and non-taxable components will require their own lines, as will items that accrue Superannuation and those that do not.
- Termination Code: For clarity on which code you should use, and the resulting taxation and superannuation treatments, please approach your accountant or payroll professional.
- When Ready to Pay is ticked the payment will appear in the next pay run,
Paid Leave
- Unused leave on termination Is a payment of unused annual leave on the final pay-out
- Other Paid Leave:
- Annual Leave,
- Personal Leave Without Medical Certificate,
- Personal Leave With Medical Certificate,
- Long Service Leave,
- Leave Without Pay,
- Cashed Out Leave,
- Paid Parental Leave
- and Paid Leave Workers’ Compensation
STP Reportable Adjustments
Certain adjustments to payroll have now become reportable. These items would be extremely rare in our client base, but if you are processing any of the below, please take note if paying Bonuses and Commissions, Director's Fees or CDEP, please select the appropriate option against "Other Type"
Fees and Workplace Giving
Will need to be identified in the drop down box as shown below:
Child Support
Child Support Payment Types will need to be identified through selecting the appropriate type from the drop down.
lump Sum Types
Lump Sum Types now need to be identified using the drop down box as shown below, for guidance on which type is appropriate for your use case, please approach your accountant or payroll professional. :