STPv4 - Readiness Checklist

Internal Companies

For each unique Payer (ABN and ATO Branch Number), you must update the following fields:

1. STP start date v4

   The date must be on/after 1st January 2021 AND no later than either 31 August 2022 or the date your independent deferral from the ATO.

2. Registered for seasonal workers

   You must set this field to Yes if the Payer is registered with the ATO to employ people under the old Seasonal Workers Program or the new Pacific Australia Labour Mobility (PALM) scheme. This ensures these employees are correctly taxed at a reduced rate.

3. Registered for working holiday makers

   You must set this field to Yes if the Payer is registered with the ATO to employ working holiday makers. This ensures these employees are correctly taxed at a reduced rate.

Termination Reasons

In STPv4 the reason an employee leaves your organisation must be reported to the ATO, who will then pass this data to Services Australia.

Each termination record must have the "Cessation reason" field populated to avoid your STP submissions being rejected.

Countries

When a country is reported to the ATO they require the 2-char ISO3166 code.

Please ensure every Country record has the CountryCode field configured to be the 2-char ISO3166 code otherwise the reported country will be blank and cause an STP data validation error

Allowances

1. Review your allowance records in respect of the ATO’s Disaggregation of Gross rules.

   Determine if any allowances need to be split to ensure payments are assigned to the correct reporting categories. If yes, you will need to check related Award Rules and Payroll Rules too.

   RECOMMENDATION: Engage with a MYOB PayGlobal Professional Services consultant to assist with award rule configuration changes

2. Ensure each allowance has the correct settings for
   1. Details (i) tab

      Subclass

      Subclass must be set for every leave allowance (this setting must also marry up with the ATO Reporting Category and Subcategory field settings

      Salary Sacrifice

      All non-paying allowance used in a salary sacrifice arrangement must be set to Yes. Non-super allowances will be the ones to pay attention to.

      Tax override type

      Bonus should be used for all lump sum payments in the current tax year, such as irregular bonuse’s, commissions, cashed-out leave.

      Lump sum in arrears should be used for all lump sum payments that relating to previous tax years

      Return to work should be used only for Non-WHM employee payments.

   2. Details (iii) tab

      Use in Super OTE

      Superannuation side this field defines whether the allowance relates to the employees “ordinary time earnings”

      ATO Reporting Category

      The list of options has been expanded - add/update each allowance record as per ATO guidance.

      For more details refer to Configuring Allowances

      ATO Reporting Subcategory

      The list of options has been expanded - add/update each allowance record as per ATO guidance.

      For more details refer to For more details refer to Configuring Allowances

Company Settings - Termination Allowances

Leave allowances must be linked to allowances with a Sub-type of "Leave on termination"

Deductions

In STPv4 it is mandatory to report child support deductions. However the ATO & Services Australia only want Child support deductions relating to "Standard" payments and "Garnishee notice" payments.

The Deduction Class must be set to L. Child support standard or R. Child support garnishee as applicable.

See Configuring Deductions for more details

Employee Records

Review your employee records to determine if you have CHP, IAA, SWP or WHM employees.

1. Closely Held Payees (CHP)

   CHP employees will need the following fields updated:

   1. Employee’s Contract record has: o Include in online tax reporting = Yes o Contract Type = Individual, Collective or blank
   2. Employee record has: o Closely Held Payee = Yes o Inbound Assignee = No

2. Inbound Assignee to Australia (IAA)

   IAA employees will need the following employee fields updated:

   1. Inbound Assignee = Yes
   2. Prior tax country = Country they last paid tax in

3. Seasonal Workers (SWP)

   SWP employees will need the following fields updated:

   1. Employee record has:

      i.Tax rate = SWP

      ii. Tax override rate = blank (prior to v4.64 this may have been 15%, PayGlobal now supports the tax calculation for SWP employees)

      ii. Closely Held Payee = No

      iii. Inbound Assignee = No

   2. Employee’s Visa Subtype = Seasonal Worker

   Note: The same settings apply to new employees on the PALM scheme

4. Working Holiday Makers (WHM)

   WHM employees will need the following fields updated:

   1. Employee record has:

      i.Tax rate = W this now applies to both employers who are registered AND non-registered WHM employers

      ii. Tax override rate = blank (prior to v4.64 for non-registered WHM employers this may have been set to a specific value. PayGlobal now supports tax calculations for both registered and non-registered WHM employers)

      ii. Closely Held Payee = No

      iii. Inbound Assignee = No

   2. Employee’s Visa Subtype = Seasonal Worker

Topic: 44839