Reckon – STP Phase 2
The Reckon Accounts 2023 R1 update is now available for both Reckon desktop & hosted users.
Within this update Reckon have launched the STP2 migration assistant that will help you quickly review, edit and update your employees and payroll items in order to lodge via Single Touch Payroll (STP) Phase 2.
If you are unaware of what is involved with STP phase 2, Reckon have provided a STP phase 2 overview.
Reckon Accounts STP Phase 2 Migration Assistant
The Reckon Accounts STP Phase 2 Migration Assistant is a simplified way to get your business ready for STP Phase 2. It guides you through all the items that you need to review, in line with the ATO’s guidelines.
To access the migration assistance in Reckon Accounts, you will need to follow the below steps:
- Go to the Employees menu
- Select STP Phase 2 Setup and there are two further options:
- Launch STP Phase 2 Setup – selecting this option will extract your active Employee List and Payroll Item List, then open the Migration Assistant window.
- Complete STP Phase 2 Setup – once you have completed your setup from the Migration Assistant window, select this option in Reckon Accounts to import your changes back to your Company file.
The Migration Assistant will guide you through a step-by-step process to update your details. If you need more detailed instructions, Reckon has provided a comprehensive guide.
To ensure accurate payroll reporting, it’s important to assign the correct tax tracking types when updating your payroll items. You can refer to the guides provided by Reckon and the Australian Tax Office (ATO) for detailed information:
- Reckon’s guide: Reckon’s tax tracking type changes
- ATO’s guide: ATO’s employer reporting guidelines
The migration assistant only allows you to edit the tax tracking of payroll items that have already been created in your Reckon file. Any additional payroll items will need to be manually added, and you can then apply the relevant tax tracking type.
Once all payroll items have been updated to comply with STP Phase 2, you will need to manually update the tax tracking type for ‘lump sum E’ and ‘salary sacrifice’ payroll items if they are applicable to you. The correct tax tracking for these items can be found at the bottom of the Reckon tax tracking type changes guide.
After upgrading to Reckon Accounts 2023, it’s important to ensure any STP submissions, such as pay runs, update events, or end-of-financial-year (EOFY) finalisation comply with the STP Phase 2 requirements.
We highly recommend updating your employees and payroll Items either manually or using the migration assistant before processing your first pay for the 2023/24 financial year.
Submitting pay runs through Reckon GovConnect have remained unchanged.
If you require any support with your transition, please contact our software specialists by emailed afs@afsbendigo.com.au.
