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THIS IS A WIP PAGE

Introduction

Synergetic now supports the latest version of Single Touch Payroll (STP2). Our developers have worked hard to automate the transition to STP2, but there are still several areas of the software that must be manually checked to ensure you understand and are fully-compliant with the STP2 specification.

In this topic you will check the following areas of Synergetic to ensure STP2 is correctly configured:

  • Pay Code Maintenance
to ensure that:
- 
to ensure that:
- Australian Government cessation codes are correctly mapped to Synergetic termination reasons
- STP2 tax scales are installed and see how they relate to legacy STP1 tax scales
Payroll Maintenance to ensure that:
- valid termination reasons are selected for employees
- employee taxation details have been converted for STP2
Payroll Configuration to ensure that:
- 

Important: You need to be running the version v70.x or later. Please contact Synergetic Support if you have not upgraded to this version.

Table of contents


Table of ContentsminLevel2

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Pay Code Maintenance

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Pay Code Maintenance

Pay is now reported as separately itemised components (Payment Types) that have a common definition, rather than a specific definition per Income Type.

has been updated to support grouping pay by income stream and additional reporting categories designed to split up gross pay into amounts for:

  • gross
  • paid leave
  • allowances
  • overtime
  • bonuses and commissions
  • directors' fees
  • lump sum W (return to work)
  • salary sacrifice.


Info

The ATO refers to this change as the "disaggregation of gross". For more information, see .


You will need to check the following pay codes to ensure compliance with STP2:




Expand
titleChecking whether pay codes are correctly configured



These 

  • Pay Codes for Deductions and Superannuation do not need Income Stream
  • Taxable Pay Codes where the Income Stream is not Salaries and Wages
  • Pay Codes for Leave
    • Reporting Category
    • Default Payment

Pay Codes for Allowances (as per PowerPoint suggestions)


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Lookup Table Maintenance - Finance

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Finance lookup tables have been updated to supported new tax scales and valid employee termination reasons defined by the Australian Government.

You will need to check the:

  • luPayrollTerminationReason lookup table to ensure Australian Government cessation codes are correctly mapped to Synergetic lookup table records.
  • luPayrollTaxationRate lookup table to familiarise yourself with the new tax scales and understand how they relate to the previous tax scales. 



Expand
titleChecking whether valid termination reasons are mapped using the luPayrollTerminationReason lookup table

Employee terminations must be reported using Australian Government cessation codes. These cessation codes are mapped to termination reasons using the ExternalSystemType and ExternalSystemCode fields of the luPayrollTerminationReason lookup table.

Synergetic maps the cessation codes during installation, but you must check the lookup table to ensure the mapping is correct.

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Expand
titleChecking whether STP2 tax scales are loaded into the luPayrollTaxationRate lookup table

Tax scales have been updated to use a four character code that combines with additional fields on the Tax tab of Payroll Employee Maintenance (see below) to define the tax treatment of each employee.

These tax scales can be viewed using the luPayrollTaxationRate lookup table. We recommend

familiarising yourself with

checking this lookup table

and taking time to understand how

to familiarise yourself with the new tax scales and understand how they relate to the previous tax scales (see the LegacyTaxScale field)

relate to the new tax scales

.

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Payroll Employee Maintenance

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Payroll Employee Maintenance has been updated to support new employee taxation fields and termination reasons.

You will need to check the:

  • General tab to ensure valid termination reasons are selected for employees terminated during the 2022 Payroll Year
  • Tax tab to ensure employee taxation details have been correctly converted.


Expand
titleChecking whether valid termination reasons are selected for employees

Employees terminated during the 2022 payroll year must be terminated using termination reasons linked to the new Australian Government cessation codes. We have already mapped the records of the luPayrollTerminationReason lookup table to the new cessation codes, so now we will select a valid reason for each terminated employee

.Start by opening

on the General tab of Payroll Employee Maintenance

and searching for all terminated employees by selecting

.

To check whether valid termination reasons are selected for terminated employees:

  1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
  2. Select 2022 in the Payroll Year field.
  3. Select Yes in the Terminated Employees field
and clicking
  1. .

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  2. Click OK.

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  1. Click the General tab
and then select a valid
  1. .
  2. Select an employee using the Payroll Employee Selector.
  3. Select a termination reason using the Reason drop-down list
in the Termination Details area
  1. .

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Repeat this process for all employees terminated during the 2022 payroll year. 
  1. Repeat steps 5 and 6 for the remaining employees.  



Tax scales and Tax Treatment Code
Expand
titleChecking whether employee taxation details have been correctly converted

Your upgrade will have converted the following data please check:

Synergetic automatically converts existing taxation details to the STP2 specification during the upgrade, but you must check the following fields for each employee to ensure the conversion was successful:

  • Tax scale
  • Medicare Levy Surcharge
  • Medicare Levy Reduction
  • Tax Treatment Code
  • Employment Basis
  • Super Liability/OTE Submit
  • Income Type.

To check employee taxation details have been correctly converted:

  1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
  2. Click OK.
  3. Click the Tax tab.
  4. Select an employee using the Payroll Employee Selector.
  5. Check whether:

    - Tax Scale field is populated with a valid (four character) STP2 tax scale code
    - Medicare Levy Surcharge and Medicare Levy Reduction fields are populated
    - Tax Treatment Code populates correctly

      Note: This read-only field is a combination of the values selected for the Tax Scale, Medicare Levy Surcharge and Medicare Levy Reduction.

    - Employment Basis field is populated with the employment of the payroll employee (e.g. Full Time Employee)
    - Super Liability/OTE Submit field is populated, if necessary
    - Income Type
to “Salary or Wages”

NB: The tax scale and treatment code for employees with a “0” tax scale will not have been converted and will need to be set per STP 2 guidelines

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  1. is populated with Salary or Wages.

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  2. Repeat steps 4 and 5 for the remaining employees.



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titleChecking whether employee pay codes
Payroll Employee Maintenance - Pay Details tab
are correctly configured

Review the Pay Codes used and update where new Pay Codes have been created per the STP 2 guidelines


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Payroll Configuration


  • Tax Rates
  • Superannuation Minimum ($0 from July)


  • Switching on STP2
    • When you are ready to move from STP1 to STP2 you will enable STP Version 2
    • You will be able to set your payroll to STP2 Test Mode
    • When ready to start submitting STP2 files to the ATO de-select Test Mode

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NB:  It is not recommended to keep switching test mode on and off again but can be used for the purposes as described above    

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Processing Pays in STP2

Changes to processing in current pay maintenance

  • When using a pay code for leave you will need to know



Processes to add / consider

  • Potentially change leave documentation to include reason for leave