Single Touch Payroll Phase 2 (STP-2)

Until now, payroll data reported by STP was accessible only to the ATO. However, under Phase 2 the data will be accessed by multiple government departments to enhance their reporting and planning activities.

It is critical that their systems understand exactly what each reported amount represents so that they may validate and utilize it correctly.

The process of enabling pieces of data from one system to be pulled into the correct places in another system is called "mapping" and for STP-2 reporting this requires employers to accurately describe each payment or deduction type by choosing from a list of ATO-prescribed options presented in drop-down lists.

Primarily, your preparation for STP-2 reporting will consist of identifying the appropriate ATO-prescribed selections from new drop-down lists for each employee, earnings type, allowance type and deduction type in your system.

You will already have much of the information required to do this but may need to refer to your tax accountant, employer association or the ATO if unsure.

To prevent you from being unable to process payruns during the entire STP-2 migration process, we have deployed a "two update" approach that splits most of the preparation work from the actual cutover to STP-2 reporting.

The first Marlin HR update allows you to continue processing payruns and reporting via STP as you are now, whilst you prepare for the migration by selecting the appropriate STP-2 options on your employees, earnings, allowances and deduction types.

Once that preparation is complete, you are able to initiate the migration (during which you will be unable to process a payrun) which consists of installing the second Marlin HR update and then performing the final preparation task.

Your system will then be STP-2 compliant and will use STP-2 reporting for all submissions.

Benefits of STP Phase 2 to Employers

Phase 2 (STP-2) is a legislated expansion of the payroll data you automatically submit to the ATO each time you complete a pay run.

The near real-time reporting of this additional information will assist the planning and activities of several government departments in addition to the ATO.

The automated reporting of the information will see a reduction or elimination of the need for employers to:

• Submit employees' TFN Declarations to the ATO
• Provide Lump Sum E letters to employees
• Advise the ATO if they change payroll software
• Provide or confirm employment and payroll information about employees
• Provide a Separation Certificate when an employee leaves
• Send separate Remittance Advices to the Child Support Registrar

Further STP-2 information for employers

For further information on STP Phase 2 and its relevance to employers and employees, please refer to Single Touch Payroll Phase 2 employer reporting guidelines on the ATO website.

We strongly recommend that all business owners and payroll officers familiarize themselves with this document.

STP Reporting - Transmission Process

Although the data and layout of an STP-2 submission is very different to that of STP-1, the generation and transmission processes are unchanged.

Upon clicking on the Finalise button on a payrun or the EOFY close-off process and accepting the standard ATO STP Declaration notice, Marlin HR generates the relevant STP submission in the required format and sends it via Megalink to Megabus.

From there it is forwarded through the MessageXchange secure gateway, typically arriving at the ATO only a few minutes after you finalise the payrun in Marlin HR.

The submissions is typically processed by the ATO system within one hour but may take several hours during busy times such as EOFY.

Once submissions are processed by the ATO, the data is typically visible in employees' myGov accounts almost instantaneously but may not be reflected on the ATO business portal until the next day.

Contents of an STP-2 submission
For details of the Employer & Employee information contained in the STP-2 submissions sent from Marlin HR to the ATO, please see below.

ATO Deadline for STP-2 Reporting

ATO Deferral Reference Number 68 929 152 automatically covered all Marlin HR users until 31st October 2022.

If you are unable to commence STP-2 reporting by the first pay day on or after 1st November 2022, you will need to apply directly to the ATO for an STP-2 deferral for your business.

STP-2 MIGRATION TIMEFRAME
ATO awards Marlin HR with STP-2 Accreditation
Aug 2022: Marlin HR passed the ATO's comprehensive STP-2 accreditation program on 22 August 2022 and received the official letter of accreditation from the ATO on 9 September 2022.

Pilot Group
Sep 2022: A small pilot group of customers were migrated to STP-2 reporting and monitored/reviewed. This enabled us to further fine tune the migration process and instructions.

User Documentation & Instructions
12 Sep 2022 - Full details of the "preparation" tasks were published below with screenshots to preview what the changes would look like in Marlin HR and descriptions of what information would need to be selected. This enabled customers to commence their preparation by gathering the required information, verifying it where necessary with their tax accountant, employer association or the ATO, and determining the appropriate selections for their employees and Marlin HR system. This preparation enabled users to enter the required information and selections into Marlin HR much more quickly, once the STP-2 Preparation update was released to customers. (Since replaced by the Full Instructions document below)

21 Sep 2022 - Instructions for the "migration" tasks (to be completed after the "preparation" tasks are completed) were added to the Instructions published below. (Since replaced by the Full Instructions document below)

Marlin HR Update #1 (STP-2 Preparation)
11 Oct 2022 - The "STP-2 Preparation" update was released to customers. Customers are now able to install the update (2.1.1 or 5.1.1) and then follow the "preparation" tasks in the Instructions below to enter the required information and selections. Customers can continue processing payruns whilst performing the "preparation" tasks.

Marlin HR Update #2 (STP-2 Reporting)
25 Oct 2022 - The "STP-2 Reporting" update (2.2.1 or 5.2.1) was released to customers but must not be downloaded/installed until "STEP 9 Migration Initialisation" in the Full Instructions document below has been completed. Customers will then be unable to process payruns until the remaining steps have been completed.

Customer Instructions

IMPORTANT TIPS

The following tips may help you to avoid confusion or issues reported by other customers as they performed their preparation for STP-2 reporting:

The Instructions below were last updated on 21/11/2022. If you are using an older version, please replace it with this latest version before continuing.
In the FULL INSTRUCTIONS document below, each STEP is a required action item and must be performed in the order presented.
Marlin HR Versions:
Your current Marlin HR version is shown at the bottom left hand corner of the screen in Marlin HR (and also on the Marlin HR startup window above where you enter your password).
You must be on version 2.1.1 or 5.1.1 (NOT LATER) to begin your "preparation" tasks and you can process payruns during this stage (Do NOT download/install any later versions until advised to do so in the Instructions or you will not be able to process payruns until Megabus rebuilds your Marlin HR system).
After completing STEP 9 Initialise Migration in the Full Instructions document you will be asked to download/install version 2.2.2 or 5.2.2 and then complete the final steps. You can not process payruns during this final phase.

Please click on the icon underneath each document below to download them to your PC. You can then view and print them as required.

Please download and follow the FULL INSTRUCTIONS document to complete each step in the order presented (You may also find it useful to print the MASTER CHECKLIST and tick each task as you complete it).

If necessary, you can view the Full Instructions here without downloading them (Click on theicon to display full screen & use left/right arrows to scroll) but it may be slow when the system is busy.

MASTER CHECKLIST

(2 Pages) - Updated 2:15pm 11 Jan 2023

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FULL INSTRUCTIONS

(17 Pages) - Updated 9:30pm 21 Nov 2022

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CRITICAL: Do NOT download a Marlin HR update until you have completed STEP 9 Initialize Migration step on page 14.

Failure to comply will require a rebuild of your Marlin HR system before you can perform a payrun or complete your STP-2 migration.

Other Handy Information

ATO information on STP-2 reporting

We strongly recommend that all business owners and payroll officers familiarize themselves with the Single Touch Payroll Phase 2 employer reporting guidelines document on the ATO website as part of their preparation for STP-2 reporting.

Quick reference table published by the Australian Payroll Association

Unsure of whether a particular payment is an "allowance" or a regular payment, or what STP-2 codes to select? You may find it helpful to have a look at the quick reference table published by the Australian Payroll Association.

What Marlin HR version should I be on?

At the bottom left corner of the screen, Marlin HR will display which version you are currently running (e.g. 2.1.1 or 5.1.1 etc).

To commence your STP-2 preparation using the Full Instructions document provided above, you MUST be on version 2.1.1 or 5.1.1 but no higher.

Next to the version number, these versions will also say to indicate that they will report via STP-1 but will provide you with the special menu options to begin your preparation for STP-2 reporting.

After you have completed all STP-2 preparation steps (up to and including STEP 9 Initialise Migration) in the Full Instructions document provided above, the instructions will ask you to install the next update (e.g. 2.2.2 or 5.2.2). Once installed, this update will use the information you entered during your STP-2 preparation and start reporting using STP-2. Beside the version number at the bottom left corner it will also say to indicate that you are now reporting via STP-2.
WARNING: If you have not yet completed all STP-2 preparation steps (up to and including STEP 9 Initialise Migration) in the Full Instructions document provided above but have already installed version 2.2.1 (or higher) or 5.2.1 (or higher), please STOP using Marlin HR immediately and contact Megabus Support for assistance.