STP2 Step 1 - Show STP2
Showing STP2 Features in Eclipse Payroll will allow you to begin the process of converting from STP1 to STP2.
When these features are shown, the Allowance, Deduction and Leave Editors and the Employee screen will change to show the new STP2 data fields. These fields can then be manipulated by you to set the correct STP2 values.
Note the following important notes:
Important Notes
DO NOT begin the conversion to STP2 just before a Payrun is due!
Give yourself a full Pay Cycle to convert. And try to finish converting in that time.
We highly recommend the conversion is done by the Payroll Manager and that other users do not use the system until it has been completed.
It will take most of our clients 2 to 4 hours of effort to convert their Payroll data.
Note that Showing STP2 Features (the first step to beginning your STP2 conversion) does not mean that STP2 will be used if you run a Pay. STP1 files will continue to be produced until you Activate STP2 (the last Step). Because of this we highly recommend you complete the conversion exercise quickly as the changes you make to your Payroll setup for STP2 may affect the pays produced and reported using the STP1 format.
Instructions
1. Open the System Options screen by selecting System Administration -> System Options from the Main Menu:
or choose the System Options button on the Payroll Workflow screen:
2. In the System Options screen, select the Single Touch Payroll Options Group.
If you are using STP but STP2 has NOT been enabled in your Eclipse Payroll, the Use STP option will be set to "YES" and the Transition to STP2 option will be set to "NO" as shown below:
If your STP Options tab does not look like this, then refer here to determine what version of STP you are using and what to do next:
What version of STP am I using?
NOTE: Even if you are not using STP you must still perform the transition to STP2. Please contact UBS Support for assistance with this.
If you wish to start using Single Touch Payroll, please get in touch with UBS Support before enabling it.
3. Show STP2.
To begin your transition from STP1 to STP2, slide the Show STP2 switch to the YES position:
When you do this the system will prompt you to confirm that you wish to Show STP2. Select Yes to confirm you wish to Show STP2 features.
Overridden Allowances and Deductions will be replaced.
At this point note that the System will scan your data for any that have been overridden at Employee level. Eclipse Payroll no longer supports overriding the following flags at Employee level:
- Is Subject to Tax: this flag determines whether the Allowance is Taxed or not.
- Is OTE: This flag used to be called "Is Subject to Retirement Payment" and indicates whether the Allowance is to be considered Ordinary Time Earnings (OTE) and therefore attracts SGC.
- Is Shown on PAYG Payment Summary: This flag is not relevant in STP2. It is shown for informational purposes only.
- Is Part of Gross: This flag is not relevant in STP2. It is shown for informational purposes only.
If any are found, the System will create NEW Allowances or Deductions for any that have been overridden at Employee level and these will be assigned to those Employees so that there are no Overrides.
Any changes made are audited. They are also reported in a dedicated Log file. The Log file is shown in the Dialog that appears at the end of this process. (See below.)
See here for more information on this.
Once the scan has completed and STP2 is set to YES you will be greeted with the following message:
If any Allowance or Deduction changes were made when the STP2 switch was set to Yes, then this will be stated in the above dialog along with the location of the Log file.
With the STP2 features shown the Option Panel will look like this:
With the Show STP2 Option set to Yes, you should now work through sub-steps A to D. These are explained below:
3A. Run the Setup Snapshot Report
The Setup Snapshot Report function will produce PDF reports that snapshot every current Employee's Payroll Setup at the point the snapshot is taken. These will be an important reference point for you as your manage the transition to STP2 as they document the pre-STP2 setup.
Selecting this function will first present a message and then a Dialog screen that allows you to select which Employees to create reports for.
Note that any employee with payroll activity in the current Financial Year may be affected by STP2 changes and you should create reports for each one so you have a snapshot of their setup before making any STP2 changes.
By default all Employees who have payroll activity in the current Financial Year will be pre-selected in the following dialog. You can add people as required but we recommend you do not remove any.
Make sure you save the PDF reports somewhere safe for future reference.
3B. Refresh the Checklist
The Checklist shows you what parts of your Payroll Setup need to be changed so they conform to the new STP2 Standard. You need to work through the Transition process until the Checklist reports that you have no Errors. At such time you will then be able to start using the STP2 for future STP submissions.
How to address the errors reported in each Payroll Area in the Checklist is covered in subsequent sections of this Help.
3C. Checklist
Any Allowances, Deductions or Leave setups that do not conform are counted in the Checklist. The number Employees affected by these pay items is also counted. Your objective during the transition phase is to alter the relevant Allowances, Deductions and Leave Setups so that they comply with STP2, and hence are not reported as being in error in the Checklist.
Additionally, you must check that every Employee affected by those changes is checked to ensure they are still being paid correctly. (This includes any person paid in the current FY including any Inactive employees.)
How to do this is covered in the next sections of this document.
When the Checklist reports that there are no STP2 problems in your Payroll Setup, then the Activate STP2 button will become enabled, as shown in 3D below.
3D. Activate STP2
You cannot activate STP2 for use in Payruns until the Checklist reports that there are no errors, as shown below.
Note that Activating STP2 in the Payrun is actually the last step in this transition process.
This step is covered in detail in Step 6: Activate STP2, here
Links
Training video for starting STP2 transition
ATO Single-Touch-Payroll-Phase-2-employer-reporting-guidelines
Showing STP2 Features in Eclipse Payroll will allow you to begin the process of converting from STP1 to STP2.
When these features are shown, the Allowance, Deduction and Leave Editors and the Employee screen will change to show the new STP2 data fields. These fields can then be manipulated by you to set the correct STP2 values.
Note the following important notes:
Important Notes
DO NOT begin the conversion to STP2 just before a Payrun is due!
Give yourself a full Pay Cycle to convert. And try to finish converting in that time.
We highly recommend the conversion is done by the Payroll Manager and that other users do not use the system until it has been completed.
It will take most of our clients 2 to 4 hours of effort to convert their Payroll data.
Note that Showing STP2 Features (the first step to beginning your STP2 conversion) does not mean that STP2 will be used if you run a Pay. STP1 files will continue to be produced until you Activate STP2 (the last Step). Because of this we highly recommend you complete the conversion exercise quickly as the changes you make to your Payroll setup for STP2 may affect the pays produced and reported using the STP1 format.
Instructions
1. Open the System Options screen by selecting System Administration -> System Options from the Main Menu:
or choose the System Options button on the Payroll Workflow screen:
2. In the System Options screen, select the Single Touch Payroll Options Group.
If you are using STP but STP2 has NOT been enabled in your Eclipse Payroll, the Use STP option will be set to "YES" and the Transition to STP2 option will be set to "NO" as shown below:
If your STP Options tab does not look like this, then refer here to determine what version of STP you are using and what to do next:
What version of STP am I using?
NOTE: Even if you are not using STP you must still perform the transition to STP2. Please contact UBS Support for assistance with this.
If you wish to start using Single Touch Payroll, please get in touch with UBS Support before enabling it.
3. Show STP2.
To begin your transition from STP1 to STP2, slide the Show STP2 switch to the YES position:
When you do this the system will prompt you to confirm that you wish to Show STP2. Select Yes to confirm you wish to Show STP2 features.
Overridden Allowances and Deductions will be replaced.
At this point note that the System will scan your data for any that have been overridden at Employee level. Eclipse Payroll no longer supports overriding the following flags at Employee level:
- Is Subject to Tax: this flag determines whether the Allowance is Taxed or not.
- Is OTE: This flag used to be called "Is Subject to Retirement Payment" and indicates whether the Allowance is to be considered Ordinary Time Earnings (OTE) and therefore attracts SGC.
- Is Shown on PAYG Payment Summary: This flag is not relevant in STP2. It is shown for informational purposes only.
- Is Part of Gross: This flag is not relevant in STP2. It is shown for informational purposes only.
If any are found, the System will create NEW Allowances or Deductions for any that have been overridden at Employee level and these will be assigned to those Employees so that there are no Overrides.
Any changes made are audited. They are also reported in a dedicated Log file. The Log file is shown in the Dialog that appears at the end of this process. (See below.)
See here for more information on this.
Once the scan has completed and STP2 is set to YES you will be greeted with the following message:
If any Allowance or Deduction changes were made when the STP2 switch was set to Yes, then this will be stated in the above dialog along with the location of the Log file.
With the STP2 features shown the Option Panel will look like this:
With the Show STP2 Option set to Yes, you should now work through sub-steps A to D. These are explained below:
3A. Run the Setup Snapshot Report
The Setup Snapshot Report function will produce PDF reports that snapshot every current Employee's Payroll Setup at the point the snapshot is taken. These will be an important reference point for you as your manage the transition to STP2 as they document the pre-STP2 setup.
Selecting this function will first present a message and then a Dialog screen that allows you to select which Employees to create reports for.
Note that any employee with payroll activity in the current Financial Year may be affected by STP2 changes and you should create reports for each one so you have a snapshot of their setup before making any STP2 changes.
By default all Employees who have payroll activity in the current Financial Year will be pre-selected in the following dialog. You can add people as required but we recommend you do not remove any.
Make sure you save the PDF reports somewhere safe for future reference.
3B. Refresh the Checklist
The Checklist shows you what parts of your Payroll Setup need to be changed so they conform to the new STP2 Standard. You need to work through the Transition process until the Checklist reports that you have no Errors. At such time you will then be able to start using the STP2 for future STP submissions.
How to address the errors reported in each Payroll Area in the Checklist is covered in subsequent sections of this Help.
3C. Checklist
Any Allowances, Deductions or Leave setups that do not conform are counted in the Checklist. The number Employees affected by these pay items is also counted. Your objective during the transition phase is to alter the relevant Allowances, Deductions and Leave Setups so that they comply with STP2, and hence are not reported as being in error in the Checklist.
Additionally, you must check that every Employee affected by those changes is checked to ensure they are still being paid correctly. (This includes any person paid in the current FY including any Inactive employees.)
How to do this is covered in the next sections of this document.
When the Checklist reports that there are no STP2 problems in your Payroll Setup, then the Activate STP2 button will become enabled, as shown in 3D below.
3D. Activate STP2
You cannot activate STP2 for use in Payruns until the Checklist reports that there are no errors, as shown below.
Note that Activating STP2 in the Payrun is actually the last step in this transition process.
This step is covered in detail in Step 6: Activate STP2, here
Links
Training video for starting STP2 transition
ATO Single-Touch-Payroll-Phase-2-employer-reporting-guidelines