Taken from Support page https://support.yourpayroll.com.au/hc/en-au/articles/360000304455-Single-Touch-Payroll-STP-Guide
Section 1: Configuration Settings
First thing's first - you need to ensure all settings are complete before jumping ahead and lodging pay events. We strongly suggest you complete each of the following and in the order we have presented:
Step 1: Enable STP. Instructions on how to do this can be found here.
Step 2: Complete/Update your ATO Supplier settings. Instructions on how to do this can be found here.
Step 3: Enable the requirement for Two-Factor Authentication upon lodging a pay event. This is an optional step and does not apply to QBO users. You can configure this setting via Payroll Settings > Manage Users > Manage Two-Factor Authentication. Refer here for detailed instructions.
Step 4: Ensure the payment summary classification setting against each pay category is correct. Pay particular attention to allowance based pay categories as the ATO has changed the reporting requirements for allowances. N.B. The new allowance settings do not affect how allowances are recorded on any new or existing payment summaries.
Step 5: Full access users can choose to receive email notifications pertaining specifically to STP pay events. These notifications relate to:
- when a lodgement fails. This will allows users who process the lodgements to move away from the screen to carry on with other work. Additionally, it allows users who are not lodging pay events to stay up to date with any lodgement issues. To activate this notification, click on "Email me when there is a Lodgement error" from the My Notifications screen.
- when an STP Pay Event Approver approves or rejects a pay/update event. This setting is only relevant to businesses using a registered Tax/BAS Agent to lodge pay events on the business's behalf. This will allows users responsible for lodgements to be notified when a requested pay event approver has either approved or rejected the event. If the event has been approved, the lodger can continue with the lodgement process. If the event has been rejected, further action will be required before the event can be lodged. To activate this notification, click on "Email me when a pay event is approved or rejected" from the My Notifications screen.
This video will show these steps as well: STP - Setup and Configuration