STP Phase 2 – Quick Start Guide

Before you begin

STP 2.0 can take a few hours to configure, depending on the number of employees and payroll categories in your system. We recommend starting the setup just after you have completed a pay run to allow sufficient setup time before your next pay is due.

The most technically challenging part of the setup is the configuration of the payroll categories. The ATO has discontinued the use of most codes used in STP Phase 1 and added new ones, so most of payroll categories in Moveware will need to be updated.

How to configure Moveware for STP Phase 2

There are four key steps to setup Moveware for STP Phase 2 which are explained below. If you require any more information, please click the link in each step, which will take you to an article explaining the setup of that particular screen in further detail.

1. Enable STP Phase 2 – In Administration -> System Setup -> System Parameters, click the ‘Codes’ tab. Find the ‘Enable Single Touch Payroll’ parameter and set it to U. You must have security group Z to do this.

2. Update Tax Scales – Navigate to Employees->Payroll Admin->Taxation Rates. Click the Update Tax Scales button and Yes in the prompt that appears. (Please click No if you want to switch to STP Phase 2 only after finalising pays in the current financial year). This will bring in the new codes required for Single Touch Payroll Phase 2.

3. Update Payroll Categories – Navigate to Employees -> Payroll Admin -> Payroll Categories. Update all relevant payroll categories with the new STP Phase 2 codes as follows:

• Select a ‘Sub Category’ for all ‘Wages’ and ‘Deduction’ categories.

• Select a ‘Code’. As a general rule, a code should be entered on all payroll categories with the exception of PAYG Tax, Superannuation Guarantee, Base Hours/Salary and any payroll category where the Category is set to ‘Entitlements’.
  This is a general guide only and your setup may differ depending on your circumstances.

Please note, if you are transitioning to STP Phase 2 prior to the new financial year, you will have to update all payroll categories (in line with STP Phase 2) that have been used in any pays throughout the year.

4. Update Employee Details – Navigate to Employees->Employee Management and add the following employee details:

• On the details tab, add an Employment Basis for all employees.

• On the Pay Setup tab, add the income stream

  • For all employees who are classified as ‘SAW – Salary & Wages’, you can either enter SAW or leave the field blank. If the field is blank, Moveware will automatically report SAW.

  • If you have employees who are classified as Working Holiday Makers, Closely Held Payees or Labour Hire, you must select the applicable income stream.

   

  Once the 4 steps above are completed, you can start submitting STP pays in the exact same way as you’re currently using for STP Phase 1.

  If you are encountering errors or have any questions, please refer to our Troubleshooting and FAQ guide.