Page Comparison

STP 2 includes a tool to check your STP 2 configuration.

In 

• System > Finance Configuration Maintenance > Payroll tab
• Payroll > Payroll Configuration Maintenance > General tab

there is a new button called Check STP 2.  This button launches a report of:

• a list of config required for STP 2
• if this is configured
• if the config is mandatory or optional

To check whether the payer details of your organisation are correct:

1. Select Module > Payroll > Payroll Configuration Maintenance from the Main menu.
2. Click the Payer tab.

Business Management Software IDs (BMS IDs) are used to uniquely identify business management software applications to the Australian Taxation Office. Complete the following steps to generate a BMS ID 

To check whether a BMS ID has been generated for your organisation:

1. Select Module > Payroll > Payroll Configuration Maintenance from the Main menu.
2. Click the BMS ID tab.
3. Check the BMS ID field. If the field is blank, proceed to step 4.
4. Click .
   The Warning window is displayed.
   
5. Click .
   The Confirm window is displayed.

6. Click .
   The BMS ID is generated.

7. Click .

To check whether tax scales are correct:

1. Select Module > Payroll > Payroll Configuration Maintenance from the Main menu.
2. Click the Tax Rates tab.
3. Check the grid area to ensure the new tax scales have been loaded.
   
   Note: The new tax scales are four-letter combinations. For example RTXX - Regular, Tax Free Threshold. Each of the new tax scales should have values in the following columns: Category, Option, Loan and Levy Exempt as shown below.
   
   
   
4. Deselect the Active field for any old tax scales.
5. Click .

Allowances now have additional reporting categories for example

ATO Allowance Code (Description)

• CD (Cents per KM) 
• AD (Award Transport Payments)
• LD (Laundry) 
• MD (Overtime Meal Allowances) 
• etc

You may already have pay codes for these allowance types.  Where you do complete the following steps to update these pay codes to use the new reporting categories.

To configure allowance pay codes:

1. Select Module > Payroll > Pay Code Maintenance from the Main menu.
2. Search for pay codes used for either:
   
   - Mileage allowances
   - Task allowances
   - Tool allowances.
   
   
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select one of the following options from the Reporting category drop-down list:
   
   - Allowance - Qualifications/Certificates
   - Allowance - Tasks
   - Allowance - Tools.
   
   
6. Click OK.
7. Repeat steps 3 to 6 to update the remaining pay codes for the current allowance type.
8. Repeat steps 2 to 7 to update additional pay codes for the remaining allowance types. 
9. Where a required pay code does not exist you will need to create the new pay codes.

Paid leave is now reported using a new reporting category. Additionally, pay codes with a reporting category of paid leave also require a default paid leave type to be selected. Complete the following steps to create pay codes for each new paid leave type introduced with the release of STP2.

To configure paid leave pay codes:

1. Select Module > Payroll > Pay Code Maintenance from the Main menu.
2. Search for all pay codes used for paid leave at your organisation.
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select Paid Leave using the Reporting Category drop-down list.
6. Select the relevant paid leave type for the pay code using the Default Paid Leave Type drop-down list. You can select:
    
   - C - Cash out leave in service
   - U - Unused leave on termination
   - P - Paid parental leave
   - W - Workers' compensation
   - A - Ancillary and defence leave
   - O - Other paid leave
   
   Note: The Default Paid Leave Type drop-down list is not displayed until Paid Leave using the Reporting category drop-down list.
   
   
7. Click OK.
8. Repeat steps 3 to 7 for the remaining paid leave pay codes.

Overtime is now recorded using a new reporting category, Individual - Gross Overtime. Complete the following steps to configure pay codes to use the new reporting category.

To configure overtime pay codes:

1. Select Module > Payroll > Pay Code Maintenance from the Main menu.
2. Search for pay codes used for overtime at your organisation.
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select Individual - Gross Overtime using the Reporting Category drop-down list.
6. Click OK.
7. Repeat steps 2 to 6 for the remaining overtime pay codes.

Bonuses and commissions are now recorded using a new reporting category, Individual - Gross Bonuses and Commissions. Complete the following steps to configure pay codes to use the new reporting category.

To configure bonuses and commissions pay codes:

1. Select Module > Payroll > Pay Code Maintenance from the Main menu.
2. Search for pay codes used for bonuses and commissions at your organisation.
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select Individual - Gross Bonuses and Commissions using the Reporting Category drop-down list.
6. Click OK.
7. Repeat steps 2 to 6 for the remaining bonus and commission pay codes.

Directors' fees are now recorded using a new reporting category, Individual - Gross Directors' Fees. Complete the following steps to configure pay codes to use the new reporting category.

To configure directors' fees pay codes:

1. Select Module > Payroll > Pay Code Maintenance from the Main menu.
2. Search for pay codes used for directors' fees at your organisation.
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select Individual - Gross Directors' Fees using the Reporting Category drop-down list.
6. Click OK.
7. Repeat steps 2 to 6 for the remaining directors' fees pay codes.

Return to work lump sump payments are now recorded using a new reporting category, Return to work. Complete the following steps to configure pay codes to use the new reporting category.

To configure return to work pay codes:

1. Select Module > Payroll > Pay Code Maintenance from the Main menu.
2. Search for pay codes used for return to work payments at your organisation.
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select Return to Work using the Reporting Category drop-down list.
6. Click OK.
7. Repeat steps 2 to 6 for the remaining return to work pay codes.

Additional reporting categories have been added for salary sacrifice pay codes. It's likely that you already have pay codes for these salary sacrifice types. Complete the following steps to update these pay codes to use the new reporting categories.

To configure salary sacrifice pay codes:

1. Select Module > Payroll > Pay Code Maintenance from the Main menu.
2. Search for pay codes used for either:
   
   - superannuation salary sacrifice
   - other salary sacrifice arrangements (e.g. gym membership).
   
   
3. Select a pay code in the Pay Code Selector window.
4. Select the income stream type using the Income Stream Type drop-down list.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
   
5. Select an option from the Reporting Category drop-down list. This will vary depending on whether you have selected sacrifice to super or sacrifice to other:
   
   (This option appears for non-super Salary Sacrifice)
   - Salary Sacrifice - Other
   
   (These options appear for Salary Sacrifice to Super)
   - Salary Sacrifice - Super and RESC both salary sacrifice and RESC will be reported to the ATO
   - Salary Sacrifice - Super will be reported purely as salary sacrifice to super to the ATO (RESC figure is not reported)
   - Reportable Employer Super Contribution will be reported purely as RESC to the ATO (salary sacrifice figure is not reported)
   
   
6. Click OK.
7. Repeat steps 3 to 6 to update the remaining pay codes for the current salary sacrifice type.
8. Repeat steps 2 to 7 to update additional pay codes for the remaining salary sacrifice type. 

Pre-tax deduction pay codes

Pre-tax deduction pay codes require an income stream type. By default, the Income Stream Type field in Pay Code Maintenance is automatically populated with the Salary and Wages (SAW) income stream type, so you will need to update any pay codes that need a different income stream type (e.g. Closely Held Payees). 

To configure pre-tax deduction pay codes:

1. Select Module > Payroll > Pay Code Maintenance from the Main menu.
2. Select Deduction - Pre-Tax (non-superannuation) from the Pay Code Type drop-down list.
3. Click OK.
4. Select a pay code.
5. Select the required income stream using the Income Stream Type field.
   
   Note: Salary and Wages is selected by default. Select another income stream type if necessary.
   
6. Repeat steps 4 and 5 for additional pay codes as necessary. 

After-tax deduction pay codes

After-tax deduction pay codes do not require an income stream type. You need to check that the Income Stream Type field is blank for all pay codes with the Deduction - After-tax (non-superannuation) pay code type.

To configure after-tax deduction pay codes:

1. Select Module > Payroll > Payroll Employee Maintenance from the Main menu.
2. Select Deduction - After-Tax (non-superannuation) from the Pay Code Type drop-down list.
3. Click OK.
4. Select a pay code.
5. Ensure that the Income Stream Type field is blank.
6. Repeat steps 4 and 5 for the remaining pay codes. 

The following pay codes do not require an income stream type:

• Superannuation - Employee Voluntary After-Tax
• Superannuation - Employer Contributed.

You need to check that the Income Stream Type field is blank for all pay codes with either of these pay code types.

To check employee voluntary after-tax and employer contributed pay codes:

1. Select Module > Payroll > Pay Code Maintenance from the Main menu.
2. Select Superannuation - Employee Voluntary After-Tax from the Pay Code Type drop-down list.
3. Click OK.
4. Select a pay code.
5. Ensure that the Income Stream Type field is blank.
6. Repeat steps 4 and 5 for the remaining pay codes.
7. Click Criteria.
8. Select Superannuation - Employer Contributed from the Pay Code Type drop-down list.
9. Repeat steps 3 to 6.

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.

Note: Synergetic maps the cessation codes during installation, but the mapping must be checked to ensure it is correct.

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 checking this lookup table to familiarise yourself with the new tax scales and understand how they relate to the previous tax scales (see the LegacyTaxScale field).

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 on the General tab of Payroll Employee Maintenance.

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.
   
   
   
   
4. Click OK.
5. Click the General tab.
6. Select an employee using the Payroll Employee Selector.
7. Select a termination reason using the Reason drop-down list.
8. Repeat steps 5 and 6 for the remaining employees.  

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 is populated with Salary or Wages.
   
   Note: The Super Liability/OTE submit option is chosen if your school uses OTE as it is not used for every school. Payroll - OTE (Ordinary Time Earnings)
   
   
   
   
6. Repeat steps 4 and 5 for the remaining employees.

STP 2 includes a tool to check your STP 2 configuration.

In 

• System > Finance Configuration Maintenance > Payroll tab
• Payroll > Payroll Configuration Maintenance > General tab

there is a new button called Check STP 2.  This button launches a report of:

• a list of config required for STP 2
• if this is configured
• if the config is mandatory or optional

Before enabling STP2 transactions, you should process test transactions to check for validation errors. Complete the steps below to process a test transaction.

To test STP2:

1. Select Module > Payroll > Payroll Configuration Maintenance from the Main menu.
2. Click the General tab.
3. Select the Single Touch Payroll Enabled field.
4. Select STP Version 2 using the Version drop-down list.
5. Select the Test Mode field.
   
   Important: You must select the Test Mode field when testing STP2. If this field is not selected you will submit pay events to the ATO.
   
   
6. Click .
7. Create a new pay. See Creating new pays.
8. Complete the payroll finalisation process up until the Process STP step. See Finalising payroll.
9. Click .
   The Process STP window is displayed.
10. Click to generate the STP event file. See Generating STP event files.
11. If any validation errors are displayed, resolve the errors and repeat this procedure from step 8. Otherwise, testing STP2 is complete.

Once you are satisfied that Synergetic is correctly configured to process STP2 payments, you can enable STP2 by disabling test mode.

To enable STP2:

1. Select Module > Payroll > Payroll Configuration Maintenance from the Main menu.
2. Click the General tab.
3. Deselect the Test Mode field to enable live mode.
4. Click .
   
   Important: Test mode is only intended to be used to test the initial configuration of STP releases. Do not continually enable and disable test mode.