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[Music] in this video well show you how to update your existing pay items so earnings can be reported correctly to the ato for stp phase 2 reporting with phase 1 of stp the gross amounts sent to the ato contain different types of earnings depending on an employees income type these include items like paid leave bonuses directors fees and allowances now under stp phase 2 reporting each of these items are being disaggregated out from the gross amount and are required to be itemized and reported separately to the ato the items requiring disaggregation are directors fees bonuses and commissions allowances pay parental leave workers compensation payments and lastly lump sum payments if you pay your employees allowances particularly all-purpose allowances as part of an award you may need to take additional steps to ensure you are reporting correctly to the ato you can find more information on xerocentral to determine if this applies to your business its now time to take a look at the pa