STP2 - Payee Income Types and Tax Scales

STP2 - Payee Income Types and Tax Scales

Single Touch Payroll 2 reports more detail in the tax codes and income type.  To assist with correctly reporting in STP2, please ensure that the following fields are updated with the required information:

1.  Tax Treatment Code
2.  Tax File Number or Australian Business Number
3.  Default STP Income Rate
4.  Employer Super

For more information on TFNs, tax treatment codes and income types, please see the STP2 Guide from the ATO website

Tax File Number 
When you report through Single Touch Payroll, you don't need to send the ATO a TFN declaration.  STP2 cannot be reported without this information. 
Please see the  STP2 Guide on the ATO website above for more information on TFNs.





Tax Scales
PSCashbook has some standard built-in tax scale options.  However, the ATO require more specific details. 
Please verify each employee’s tax scales for their personal variations in the link to the STP2 Guide on the ATO website above.

To verify that you have the correct code for the selected tax scale, navigate to the Tax Scales tab in Payroll and double click on the appropriate tab. 
The tax code will be revealed.   





If you are unable to find the correct code, please speak with your accountant or the ATO.

Default STP Income Type 
This is a NEW mandatory requirement.  
Please refer to the above STP2 Guide for more information on this to ensure you have the correct type for each Payee.

You need to set each employee/payee's default payment on this tab. 

 When you come to add a pay, this can be adjusted to a different income type if required.




ABNs 
Payments to contractors can be made through Single Touch Payroll.  If you have been reporting these payments already in STP1, you should continue to report them through STP2.
An ABN must be provided if you are using Voluntary Agreement as an Income Type
For more information please see the relevant links on Voluntary Reporting and Contractors.


Employer Super
a.       Verify you are on the current rate of 10.5% (2023) or adjust to the current rate.

b.       Select fund name or add a new fund by clicking on the “+”

c.       Add the member number

Tip:  Did you know that with two extra clicks you can pay Super through Cashbook? Contact PS to find out more.