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The following article has been transferred to https://help.synergetic.net.au/s/article/STP-2-Frequently-Asked-Questions

Last Updated: 4 July 2022; 12:45 pm AEST.


Frequently Asked Questions

Below are the FAQ's for the 2022 STP 2 implementation.

Table of Contents
excludeFrequently Asked Questions

STP 2 Deadline - 30 June 2022

Requesting an Extension

If you require an extension (below), you must request one from the ATO, see:


ATO Page: If you need more time

Fixes to Date

What Fixes are there to date?

Below is a list of fixes to date.


Scenario : There exists a way to create Paid Leave pay lines without them having a Paid Leave Type. This is not picked up by validations.

(Internal Reference: DSY-22798)

Cause : Post STP 2 upgrade, when changing a non-Paid Leave pay line to a pay code being for Paid Leave, it is possible to create data errors where the Paid Leave pay row was not updated to have a Paid Leave Type.

These errors are not being picked up by the Synergetic STP validations.

Fix : STP validations fixed to check historical pay records for missing Paid Leave Type.


Run 2022-06 - STP 2 Fixes to apply this fix.



Scenario : STP Submission contains incorrect aggregated Gross

(Internal Reference: DSY-22826)

Cause : Current Pay Year historical pays contain Paid Leave records with blank Paid Leave Type field.

Fix : Historical Paid Leave rows must have a Paid Leave Type applied. To do this:

  • Find a Current Year Paid Leave row with missing Paid Leave Type
    • Use this as reference record
  • Ensure all Paid Leave pay codes have a default Paid Leave Type
  • Apply 2022-06 - STP 2 Fixes
  • Check the reference record has been fixed.
  • Run an Update Event
  • Issue should be resolved



Scenario : STP (version 1) allowance validation error blocks subsequent submissions

(Internal Reference: DSY-22694)

Cause : Current Pay Year historical pays contain Paid Leave records with blank Paid Leave Type field.

Fix : Historical Paid Leave rows must have a Paid Leave Type applied. To do this:

  • Find a Current Year Paid Leave row with missing Paid Leave Type
    • Use this as reference record
  • Ensure all Paid Leave pay codes have a default Paid Leave Type
  • Apply 2022-06 - STP 2 Fixes
  • Check the reference record has been fixed.
  • Run an Update Event
  • Issue should be resolved



Scenario : Invalid Tax Scale error on staff with an invalid pay group

(Internal Reference: DSY-22819

Cause : When performing a payrun (special or normal), if you include employees who have an invalid pay group (most likely not defined) Synergetic will display the following misleading error:

Error: has an invalid tax scale.

Note that the tax scale is not actually mentioned. This is what separates this error from an error where an employee genuinely has an invalid tax scale

Fix : This was fixed in the program logic.


Run 2022-06 - STP 2 Fixes to apply this fix.



Scenario : When creating a special pay without selecting any employees, every employee is being added – erroneously.

(Internal Reference: DSY-22820)

Cause : Programming issue.

Fix : This was fixed in the program logic.


Run 2022-06 - STP 2 Fixes 1 to apply this fix.



ATO Says OK to Not Disaggregating Paid Leave In Transition Year




Scenario : Salary sacrifice Superannuation should migrate with reporting category "Salary Sacrifice - Super and RESC”

(Internal Reference: DSY-22626)\

Cause : Salary sacrifice to superannuation pay codes were being migrated with a reporting category of “Salary Sacrifice”. This causes salary sacrifice to not be reported under RESC in ATO submissions. This should be reported using “Salary Sacrifice - Super and RESC”.

Please note that both individual values are valid, and may be reported as either or both, but the default behaviour should be to include in RESC and report as both.

Fix : For migration - set default value for Salary Sacrifice to “Salary Sacrifice - Super and RESC”.


Run 2022-06 - STP 2 Fixes to apply this fix.



Scenario : STP 2 - Payer Total PAYGW Amount’ should include 'Payee Total ETP PAYGW Amount

(Internal Reference: DSY-22874)

Cause : In STP 2 the Total PAYGW Amount in the STP pay event submission does not include the ETP Withheld amount. The total PAYGW amount field should be the sum of PAYGW + ETP PAYGW

Fix : Fix the total PAYGW amount field to be the sum of PAYGW + ETP PAYGW.


Run 2022-06 - STP 2 Fixes to apply this fix.



Scenario : Employees with RFB (reportable Fringe Benefit) but no other reportable income are not being picked up in the ‘Bulk Set Final Event Indicator’ process

(Internal Reference: DSY-22890)

Cause : Programming issue.


Fix : Fix applied in the Program Code.


Run 2022-06 - STP 2 Fixes to apply this fix.



Scenario : Speed improvement when generating an STP update

(Internal Reference: DSY-22898)

Cause : Programming issue.


Fix : Fix applied in the Program Code.


Run 2022-06 - STP 2 Fixes to apply this fix.



Scenario : Possible timeout error when generating an STP update event

(Internal Reference: DSY-22814*)*

Cause : Programming issue.


Fix : Contact Support and ask for the fix to be applied.


Scenario : STP2 introduced Lump Sum Type AR and Lump Sum AT reporting categories.

If an employee has a line of pay with reporting category of Lump Sum A and another line with Lump Sum AT these pay lines amounts are not aggregated causing an error.

(Internal Reference: DSY-22904)

Cause : Programming issue.

Fix : Fix applied in the Program Code.

 

Run 2022-06 - STP 2 Fixes to apply this fix.


ATO deadline to be STP Compliant

Based on a clarification from the ATO the following was changed on 26 May 2022.

Synergetic is compliant with the ATO requirements for STP 2 and an exemption for schools using Synergetic Payroll is in place to 30 June 2022.

What this means is, unless the ATO has granted a specific extension for your school, you will need to have upgraded and commenced using STP 2 (STP payevnt 2020) prior to your first pay in FY 23 (ie first pay post 30 June 2022).

  • If you have not reported a pay using STP 2 in FY22 you can close out FY22 using original STP (STP payevnt 2018), 
  • If you have reported a pay using STP 2 in FY22 you must close out FY22 using STP 2 (STP payevnt 2020), 

(Attend the Payroll End of Year Webinar for more information on closing out FY22.)

If this does not meet your school needs, then request an additional extension from the ATO.

Expand
titleATO Clarification:

25 May 2022

Hi Graham Kidd

It was good speaking with you this afternoon.  To confirm our conversation:


kind regards,

*****

Victorian Catholic Education Schools

If you are a Victorian Catholic Education school you need to speak with Catholic Education for clarification as to whether you should :

  • upgrade to v70.16 and / or
  • commence STP 2 submission in FY 22




To clarify - if we have done the upgrade then is there anything we must do before our next payroll submission under stp 1 or does all the config just need to be done ready for stp 2?

There is no additional action required once you have your upgrade to STP 2 prior to continuing with STP 1 (STP payevnt 2018) pays,  We do recommend you check some pay records to establish your comfort level that all is well.

Prior to submitting your first  pay in STP 2 (STP payevnt 2020) you need to have completed the steps as outlined in the Webinars and on the Synergetic User Hub page: STP 2 - How to Guide for schools transferring to STP 2 



If my payroll ends on 1/7 but the money is paid on 30/6 then this falls within the 2022 year - please confirm.

The Pay Date determines the "date" of the pay. If this is on or before 30/06/2022 then the pay is in FY 22.



Tax File Number Declarations

What is changing with the Tax File Number Declaration?

The key changes are:

  • For STP 2 “Payment Basis” has been renamed “Employment Basis”
  • There are additional Employment Basis options to select including : Voluntary Agreement, Death Beneficiary and Non-Employee
  • Pension / Annuity Payee however, is no longer an option so this has been set to inactive

A confirmation message will populate where a change made on the Declarations tab requires an update to the Tax tab

You will still need to set the record to Ready to Send for it to be included in the STP submission file.



For any existing staff where the declarations tab is blank, do we have to enter the declaration information retrospectively 

No, the Tax Declaration is a record of what is provided on the Payees Tax Declaration form, and needs to reflect the form as it is submitted.

Income Statement

Will we still be able to produce Income Statements?

Income Statements are available to your employees via their MyGov account.

The Print PAYG Summaries process still exists in Synergetic however they are no longer an official document.

Income Streams

When the changeover happens, I assume all existing pay codes will be applied a default income stream code? Pay officers will then need to double check if they are correct or not?

Yes, the upgrade applies a default Income Stream of Salary and Wages to all taxable pay codes.  Where you have another Income Stream, this will need to be checked manually.


Upgrade Process

When can we book to update to v70, and will this be done via Synergetic Support?

Synergetic v70.16 has been announced as the build for schools moving to Synergetic Payroll and/or transitioning to STP 2. You will need to log a support ticket to book in your upgrade via a Service Desk Ticket - Synergetic Service Desk

This page also has a url link to book your timeslot once you have logged your upgrade support ticket.



Will information on upgrading be sent to us via mail or will we have to go somewhere to get access to this information.

The information on when, where and how to book upgrades has been released via email, on discourse and STP2 webinars.



How long does the Update process take?

The STP 2 v70.16 upgrade takes around 3 hours.



We have a 'test Synergetic database'.  When we upgrade to v70 does that test environment get upgraded too.

Usual practice is to create two tickets, one for test and one for production. Synergetic suggests schools upgrade their test database a couple of weeks prior production.

We suggest you always request your test instance is upgraded to keep your production and test instances to remain in sync.



Will there be enough time for us all to plan before the cut over

The aim of the Webinars is to provide sufficient information so that you can plan your configurations

We started the upgrade process as soon as we received ATO White List approval and confirmed v70.16 was the build for schools using Synergetic Payroll. 

We have been recommending that you book in for your upgrade as early as possible after you receive the notification



Is there anything we should be doing now to prepare for it?

Review the information from the ATO : https://www.ato.gov.au/Business/Single-Touch-Payroll/Expanding-Single-Touch-Payroll-(Phase-2)/

Engage with our STP 2 webinar series, we are here to help : https://educationhorizons.arlo.co/w/courses/74-synergetic-stp-2

Check you have SQL2016 (required for v70.16)

Lock in your date to upgrade as early as possible

In relation to your pay codes, consider :

  • Do any pay codes need to be set with a different income stream from Salaries & Wages
  • Which pay codes will need to a different reporting category

In relation to employees, review :

  • the termination reason recorded for any employee terminated in FY2022

Tax Scales


We have written a User Hub article on tax scales:   STP 2 - Tax Scales

We have also produced an explanatory video : Tax Scales Video by Graham Kidd


Do we need to update the tax scale for all existing employees, or is that automatic with the upgrade?

Tax scales are updated by the upgrade process.  We recommend doing some visual checks.  This will also help you understand the new tax scales.



Can you do a comparison of the STP tax rates and the STP 2 tax rates to see if anything changed in the upgrade?

The Lookup table  luPayrollTaxationRate includes the old tax rates as well as the new tax rates, you will be able to use this as a guide when comparing pre and post upgrade tax rates.

You can also use the Highlight Pay Variations when running the payroll journal listing report to show where variations have occurred

 


Reduction in tax for salary sacrifice to super, and HELP

Any Payee who salary sacrifices super and was Tax Scale 1 with HELP, or Tax Scale 2 with HELP and is now RNSX or RTSX will have a reduced Tax amount.

This is because:

Tax Scale 1 with HELP, or Tax Scale 2 with HELP calculated Tax based on income less salary sacrificed super, and HELP on the full income (ie not less salary sacrificed super)

the new four character based Tax Scales calculates Tax and HELP based on income less salary sacrificed super.

eg 'Tax Scale 2 with HELP' pre STP 2 calculates Tax based on income less salary sacrificed super and HELP based on full income

income                                =   $3,000
salary sacrificed super         = - $500
tax calculated on $2,500     =   $598
HELP calculated on $3,000  =   $150
Total Tax                               =   $648

eg 'Tax Scale 2 RTSX - STP 2 calculates Tax and HELP based on income less salary sacrificed super

income                                =    $3,000
salary sacrificed super         = - $500
tax calculated on $2,5000    =   $498
HELP calculated on $2,500  =    $88
Total Tax                               =   $586

Note: Tax Scales S1 and S2 are not affected as these incorporate HELP payment. They have always calculated on the reduced gross amount and will return an exact match with RNSX and RTSX respectively.

Explanatory Video

TaxCalcVariationExplained.wmv

Pay Codes

How do we know which pay codes need to be updated? 

The key to answering this question is not a Synergetic based one.  Ensure you understand STP 2 from the ATO perspective, know what they are expecting to be reported in what way.

With this understanding you can ensure that your pay codes are configured to support that reporting.  This will allow you to look at the changes we have made and understand what you need to confirm and configure with your pay codes.

We have written the STP 2 - How to Guide for schools transferring to STP 2 to support you in this.

You can also run the Crystal Report Payroll Code Listing (PAYCODELISTING) to assist in this process.

Leave

How do I understand my schools circumstance in regard to paid leave and reporting leave via STP.

Our understanding is paid leave needs to be reported to the ATO as leave. We recommend that if you have questions on understanding the ATO requirement to report paid leave you ask the ATO directly.


Once you have a clear understanding of your situation and how the ATO interprets it, we are fully able to help with your questions regarding the mechanics of reporting paid leave via STP 2.



Will Synergetic link the leave codes and pay codes so when a record of leave is entered, it goes thru to current or future pay runs?

Yes, the Leave functionality has not changed with STP 2 you are still able to link your leave pay codes to a leave code.

The additional step in STP 2 is when recording paid leave you will need to add a Paid Leave Type



If someone takes annual leave but I don't receive the leave form on time, can it be adjusted in the next pay?

Yes.  The actual pay and STP process has not substantially changed for STP 2, so these types of adjustments or fixes in next pay are still the same as per STP.



School holidays would normally be processed as regular pay. Would I need to set up new pay codes and this is as paid leave now or can it still be paid as normal pay?

Under STP the amount paid against a leave Pay Code was not separated, under STP 2 the paid leave type and the amount paid are reported separately.

In the following scenario the employee has taken some paid leave the first screen shot is the STP File generated under STP1

Scenario

The employee receives 152 hrs of pay per month. In this pay she has taken 5 hours of annual leave.

The hours on Pay Code NTEACH2 are reduced by the hours of annual leave

The annual leave hours are recorded using Pay Code NANNUAL

The same pay rate is applied to both payment lines


Under STP the amount of leave paid is not reflected in the STP submission.

 

Under STP 2 the amount of leave paid and the type of leave are reported in the STP submission 




All of Catholic Education leave is managed in total with CEVN. If a new staff member comes in they may have a opening balance or if they leave and continue in Catholic Education the leave entitlement remains and stays with CEVN. How do we manage this in Synergetic. We currently do not manage leave in Synergetic at all, it is all done in CEVN

If you are not maintaining leave entitlements in Synergetic your leave Pay Codes will not be linked to a leave code.

With STP 2 when a Paid Leave Pay Code is applied the user will be prompted to confirm the Paid Leave Type (see the list below). If a Default Paid Leave Type has been set in the Pay Code the user has the option to change this record when applying the Pay Code to a current pay



Is Personal leave taken recorded in dollars or hours/days or both

Leave taken is usually recorded in a current pay with a Rate and Units 


Why is my pay failing for Paid Leave Type, but the Payee is not on leave?

If you receive the validation:

but your payee has no Paid Leave Pay Line in this pay, check all previous Pays for a Pay Line with Pay Code with Reporting Category of Paid Leave and ensure these Pay Lines have a Paid Leave type.

Note:  this applies for all submissions, not just pays.


ATO Says OK to Not Disaggregating Paid Leave In Transition Year

I asked the ATO the following question:

For our clients who have turned on STP 2 in FY 22, and are submitting FY 22 pay events, the paid leave reporting aspect is causing a great deal of stress.

In many cases their past pays do not separately identify the paid leave component. In order to accurately report this figure manual adjustment of 100’s of employees is required.

Our question is: For FY 22 is it acceptable that paid leave is included in Gross, and not separately identified - as was the case in STP 1.

The overall gross figure will be correct.

Going forward FY 23 the reporting of Paid Leave will be correct.

Please note this is a data issue and is in no way a system shortfall in regards to being STP 2 compliant.

The ATO replied:

Hi Graham

Sorry for the delay and i do have a response from our STP team.

"Yes this is ok to not have a fully disaggregating for the transition year.

Please refer to this link (1.2.3.1 ATO concessional approach when data is not present)

Section 1.2.3.1

ATO STP Phase 2 Guidance Note - Transition to PAYEVNT.2020 Service V1.2 (pp 8 -10).pdf

Full Document

ATO STP Phase 2 Guidance Note - Transition to PAYEVNT.2020 Service V1.2.pdf


Salary Sacrifice

Please provide some more details on reporting the salary sacrifice (other than super) under STP 2

Salary Sacrifice is either Salary Sacrifice - Super or Salary Sacrifice - Other.  There is a Reporting Category for each.

The Upgrade will update the Reporting Category from Individual - Gross using the Pay Code Type to determine whether the new Reporting Category should be Salary Sacrifice - Super and RESC or Salary Sacrifice - Other.

Medicare

Do we need to get information from staff about their medicare levy and dependents? 

Yes.  You need to be able to complete the fields on Payroll > Payroll Employee Maintenance > Tax



The current tax declaration forms do not ask the Medicare questions. Where was the form you mentioned that we could use to gather this information?

Where an employee has a Medicare Levy Surcharge or Medicare Levy Reduction they will need to provide you with the information. There is a form which employees can complete and submit to your payroll officer under : Medicare levy variation declaration | Australian Taxation Office (ato.gov.au)  (as at 19/5/2022)

Payroll Journal Report

Would there be any possibility for the payroll journal report to have a total of the units paid to each employee seeing as the units have to be split between normal hours and leave hours?    

This is not something we have addressed to date.

SQL 2016

Is it possible to check within Synergetic if we have SQL 2016 as a minimum? or is this something our IT people will know about. 
In the "About" I can see we are currently on v69, that we use SQLA but not what year it is. Thank you?

This is something your Sys Admin will be able to answer for you.

STP Process

Is there any difference to what we do in terms of STP transmission after we upgrade?

STP 2 does not change the Finalise Payroll or Process STP

SYNWeb / Staff Kiosk

Is Staff Kiosk on Synweb being updated to allow staff to provide Payroll team with updated information?

An update to Staff Kiosk is not part of the STP 2 update project

Consulting Services for STP 2

Once we have updated to STP 2 and before we process the payment can someone in Synergetic come and check our data. We did this for STP1 and we are more than happy to do this again.  We know there are some costs involved.
Someone who can validate our data before we process the first pay with STP2.

Professional Services Finance Specialist Consultants will be available to assist schools with the transition to STP 2.

Please log a Consulting Services ticket and one of our team will be in touch. This will be a paid engagement.


Invoiced Pay and Super Outside of Synergetic

We recently asked the ATO this question.  Their answer is included adjacent.

We have a school who uses contractors (eg Sports Coach) and under ATO rules must pay them Super.

The school pays the contactors via the Creditors system with the Contractor invoicing them for payment, and the school paying the contractor against the invoice. None of this is within our payroll system, and thus not within STP.

STP allows for paying of Super only, using Tax Treatment Code DZXXXX, but for us this would only happen if the school paid the Super via our payroll system. Which they do not.

Our question is, is the reporting of contractor Super via STP voluntary? All of the ATO Online documentation we can find suggests it is, but we have not found a definitive statement.

Our question is:

Can the school continue to pay the Invoice amount and obligatory Super outside of Payroll, and thus outside of STP? If so, is reporting to the ATO handled through the Super Fund / Clearing House, and therefore the school themselves do not have to report this payment to the ATO?

ATO Answer:          Yes, this is voluntary.

ETP Taxable and ETP Withholding components must align

Why am I receiving ETP errors:

  • When Payee Total ETP PAYGW Amount is provided, Payee Termination Payment Taxable Component must be provided
  • When Payee Termination Payment Taxable Component is greater than 0, Payee Total ETP PAYGW Amount must be 0 or greater than 0

The ATO requires that for ETP payments there must be both a Taxable component and a Withholding component reported.

If not one of these errors will be encountered:

  • When Payee Total ETP PAYGW Amount is provided, Payee Termination Payment Taxable Component must be provided
  • When Payee Termination Payment Taxable Component is greater than 0, Payee Total ETP PAYGW Amount must be 0 or greater than 0

To satisfy the ATO requirement and not receive the relevant error, the two components must be paid on the same date and for the same ETP reason.

eg:

BAD as the dates are different for the same ETP reason, each one fails the rule
19/12/2021 - ETP reason = T - ETP Taxable component $2000
01/06/2021 - ETP reason = T - ETP Withheld component $0


BAD as the dates are the same but the ETP reason is different, each one fails the rule
19/12/2021 - ETP reason = T - ETP Taxable component $2000
19/12/2021 - ETP reason = R - ETP Withheld component $0


GOOD as the dates and the ETP reason are the same
19/12/2021- ETP reason = T - ETP Taxable component $2000
19/12/2021- ETP reason = T - ETP Withheld component $0

ETP Reason