Hello JR_Bookkeeping,

The ATO have advised to make sure customers have created and lodged an updated pay event prior to lodging pay events under the STP Phase 2, so that the ATO can validate any changes made and disaggregation of earnings was transitioned correctly. First, you have to make sure you've checked your payroll information is updated like your pay, leave and deduction category settings.

You can check this article to learn more about the changes you need to check for Single Touch Payroll (STP) Phase 2 Hub. Once you've verified the setup is correct, you can then create and lodge an updated pay event. Here's how:

1. Click on the Employees tab.
2. Click on Reports.
3. Click on Single Touch Payroll.
4. Click on Create Update Event.
5. Click on the Financial Year and Pay schedule.
6. Click on Create.

Once done, the ATO should be notified of all the changes made in your payroll settings to report the STP phase 2.

Feel free to message us back if you have more concerns about QuickBooks Online Payroll. The Community is here to help you. Have a great day!