Hi, I have noticed that the RESC reporting category has dropped of the STP report since phase 2 reporting.  Is this correct?

Hi KerriC1,

Welcome to the Community space!

In the Single Touch Payroll Phase 2, the QuickBooks Online Payroll automatically updates the Salary sacrifice (superannuation) classification to any existing deduction category mapped to the deduction RESC. You'll need to review all other deduction categories about salary sacrifice arrangements other than superannuation as they will need to be manually mapped to the Salary sacrifice (other employee benefits) classification.

There are 2 new payment classification options in the deduction category settings:

• Salary sacrifice (superannuation) - An effective salary sacrifice arrangement, entered into before the work is performed, where contributions are paid to a complying superannuation fund, whereby the sacrificed salary is permanently foregone.
• Salary sacrifice (other employee benefits) - An effective salary sacrifice arrangement, entered into before the work is performed, for benefits other than for superannuation, where the sacrificed salary is permanently foregone, e.g. novated lease, gym membership, workplace giving donations, car, property (goods, land, buildings, shares and bonds), expense payments (loans, school fees, childcare costs and home phone costs) and work-related items such as portable electronic devices and equipment.

If you have created custom salary sacrifice deduction categories, please ensure that they're manually mapped to the Salary sacrifice (other employee benefits) classification:

1. Select Employees, then select Payroll Settings.
2. Select Deduction Categories under Pay Run Settings.
3. Select the deduction you created manually, and change the Classification.

To learn more about salary sacrifice changes, you can check this article for more information Update deduction categories for STP Phase 2.

Post again in the Community if you have more questions. I'll be here to help you. Have a nice day!