Modifications are on the horizon for Single Contact Payroll (STP) Section 2, the following stage of the STP journey. This can see Australian companies construct on their current reporting to share extra data every pay cycle. That will help you make the transition, Xero is rolling out these adjustments in three levels forward of our deferral deadline later this 12 months, with the vast majority of updates accessible from August.
We beforehand shared a broad overview of this rollout. Now, as we get nearer to the launch, we wish to carry you in control on if you’ll see these updates in Xero.
STP Section 2 will replace the way you file STP
By now, most Australian employers file utilizing STP. It’s a manner of capturing related data and sharing it with the ATO every pay run – and why we’ve bid farewell to EOFY cost summaries. STP Section 2 is the following evolution of this reporting. The place section one had us reporting staff’ tax and tremendous on to the ATO, STP Section 2 expands this system to seize extra detailed data. This reduces the compliance burden for employers and people, and helps the admin facet of issues for the ATO and Providers Australia.
Though you will want to supply the ATO with extra data, the way in which you submit STP experiences received’t change. How a lot it differs out of your present course of will rely on the distinctive qualities of what you are promoting and staff.
The adjustments will kick off from this August inside Xero
There are just a few massive moments on the horizon as we roll out the updates in three key levels. However don’t fear, we’re right here to assist you alongside the way in which as you make the transition. Listed here are the dates it’s best to know:
Stage one – August: The primary a part of this course of is transitioning your new and current worker information to be STP Section 2 compliant. This implies offering new particulars on current workers, like whether or not they’re an worker or contractor. A few of you might already be testing out the brand new worker arrange course of as a part of our restricted launch so shall be conversant in these fields.
Stage two – August: Subsequent, you’ll must establish and replace pay objects with the brand new earnings classes outlined by STP Section 2. These new earnings classes are already accessible in Xero Payroll, like Administrators’ charges and Bonuses and Commissions, if you wish to get a head begin.
Stage three – October: That is the ultimate step within the STP Section 2 transition and can break paid go away down into further subcategories. We’ll assist you with a guided payroll expertise to extra simply replace current go away classes to fulfill the brand new reporting necessities.
Begin planning time on your transition
Whilst you’ll have the time to make all related adjustments, the very best method is to put aside time to get it achieved forward of the top of 12 months deadline. As soon as all of that is achieved, you’ll be able to file your first-ever STP Section 2 compliant pay runs.
Xero’s instructional assets and transition instruments will allow you to by means of the method
We’ll maintain you up to date at each step, with loads of instructional assets, like webinars, movies and how-to articles throughout channels like Xero Central and social media, in addition to in payroll updates to information you alongside the way in which.
We’ll even be launching two transition instruments in August that can assist you work by means of the adjustments:
- Worker report transition wizard: Utilizing this guided expertise, you’ll have the ability to replace current worker information to seize related STP Section 2 objects.
- Pay merchandise transition wizard: After your worker information are up to date, you’ll have the ability to establish and replace pay objects and pay templates to the brand new STP Section 2 earnings classes utilizing this software.
EOFY reporting will keep the identical for FY22
It’s vital to notice that each one Xero payroll prospects will proceed to report STP Section 1 in the intervening time. The rollout of STP Section 2 pay objects and updates to the worker setup course of in Xero Payroll won’t have an effect on reporting or any year-to-date (YTD) values despatched to the ATO, together with the STP finalisation course of in July 2022. Your advisor can assist along with your EOFY reporting as traditional.
Get conversant in the pay objects and stage one restricted launch
In case you meet the factors for the stage one restricted launch, you may get began by signing up in Xero Payroll. In any other case, now is an efficient time to get conversant in the brand new earnings classes and different additions already accessible inside Xero. As all the time, it’s best to search impartial recommendation as applicable for what you are promoting.
We’ll proceed to let as STP Section 2 adjustments are rolled out and be sure to have what you’ll want to be prepared.
Discover out extra about STP Section 2
Searching for extra data on STP Section 2? Check out our information to STP Section 2, timeline infographic and this helpful guidelines. You can too go to Xero Central or discuss with the ATO’s employer reporting tips.
We’ll be sharing loads of data and academic assets over the following few months as we get nearer to those massive updates. Hold an eye fixed out in Xero Payroll and throughout all our channels, and attain out when you do have any questions – we’re right here to assist.