STP 2 TFN Declarations and 6 Digit Tax Treatment Code

Question

Does the STP 2 report&nbsp; we submit each pay period Via Account Right Live to the ATO include each employee's 6 digit tax treatment code that is required by the ATO in lieu of sumbitting TFN Declarations to them?&nbsp;I ask because the Employee YTD Report we can see on the STP reporting Portal does not show this code, but that does not necessarily mean it is not reported.&nbsp; I am also concerned because I have seen posts as recent as May 2021 saying MYOB has elected in NOT participating in electronic TFN Declaration reporting.&nbsp; Again, I appreciate this is a slightly different question.&nbsp;&nbsp;&nbsp;Please confirm - are employee six digit tax treatment codes being reported to the ATO with each period's payroll submission to the ATO? or by any other means? and if so, please provide the particulars.&nbsp;Thanks.&nbsp;&nbsp;

sam_vet · Answer

From a Myob page&nbsp; (&nbsp;Enter employee payroll information - MYOB AccountRight - MYOB Help Centre&nbsp;) -&nbsp;&nbsp;"Once you're on STP Phase 2, a new employee's tax details will be sent to the ATO when you declare their first pay run from AccountRight, so you won't need to submit a TFN declaration."&nbsp; &nbsp;&nbsp;&nbsp;Please note - the information is apparently submitted to the ATO on the FIRST pay run ONLY; subsequent changes (eg newly taken student debt) are apparently not reported.&nbsp; But as long as you are withholding correctly, that shouldn't be a problem.&nbsp;We have been advised by our tax agents/accountants (quite a large, reputable firm), that even though we don't need to send the TFN Declaration to the ATO, and even though we collect the required information through our HR system, we still need to keep a physical copy of the form for each employee.&nbsp; Quite stupid, but there you go.&nbsp;This tax agent also confirmed that as long as the ATO accepts our STP 2 reports, we have met our reporting obligation to them.&nbsp;Hope this helps.&nbsp;

sam_vet · Answer

I did contact the phone centre and got a vague answer. I've given up the issue because our tax accountants have advised that if the ATO is accepting us as STP 2 compliant, we have no concern.

But I think others may have a similar question, and I think an explicit answer is warranted here for others to see as well.

How and when is TFN data (6 digit tax code) reported from MYOB/Account right to the ATO?

davidv2 · Answer

Thanks, this was very helpful.

samaram · Answer

Hi&nbsp;SAM_Vet
&nbsp;
I can see you've since been in contact with our phone-based team regarding this question.
Please don't hesitate to post again if you need assistance in the future.
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If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

davidv2 · Answer

Hi, I have the same question. What was the solution?

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STP 2 TFN Declarations and 6 Digit Tax Treatment Code

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