Prepare, as a result of the primary stage of Single Contact Payroll (STP) Section 2 is correct across the nook in Xero. For a fast refresher, STP Section 2 will see Australian companies construct on their current STP reporting to share extra data with the ATO and different authorities businesses every pay run.
Learn on to seek out out the whole lot you must find out about what stage one will seem like inside Xero – and what you’ll have to do to organize.
First issues first, STP Section 2 is the subsequent evolution of STP reporting
The place section one had you 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 aspect of issues for the ATO and Providers Australia.
The modifications will begin rolling out from late August inside Xero
The rollout is kicking off in three key phases inside Xero. Whereas stage one is happening as deliberate, so we are able to make sure that phases two and three are equally as streamlined, we’ll be pushing their supply dates out (relaxation assured, everybody may have the time they should transition). That will help you work by the upcoming modifications, we’ll even be launching transition instruments at every stage.
Right here is our up to date timeline:
Stage one – Ranging from late August: The primary a part of this course of is transitioning your new and current worker profiles 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 it’s possible you’ll 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 – Coming quickly: Subsequent, you’ll have to determine and replace pay objects with the brand new earnings classes as outlined by STP Section 2. New earnings classes like Administrators’ charges and Bonuses and Commissions are already accessible in Xero Payroll, if you wish to get a head begin.
Stage three – Coming quickly: That is the ultimate step within the STP Section 2 transition and can break paid depart into further subcategories. We’ll help you with a guided payroll expertise to assist replace current depart classes to satisfy the brand new reporting necessities.
Stage one entails some modifications to new worker setup in Xero Payroll
As detailed above, with stage one, worker onboarding shall be altering. In consequence, all new staff arrange in Xero Payroll will naturally be STP Section 2 compliant. These modifications will begin rolling out from late August and as a part of this course of, the employment and taxes tabs may have a brand new look and a few further fields to finish.
We’ll be launching the worker profile transition device that can assist you with stage one
Utilizing this guided expertise, you’ll be capable of replace current worker profiles to seize related STP Section 2 data.
There shall be an improved STP Section 2 Portal in Xero Payroll
As a part of the August launch, we’re updating the STP Section 2 Portal inside Xero Payroll. This can turn out to be the central level for patrons to know and motion the steps for a profitable STP Section 2 transition over the approaching months.
You may be notified inside Xero Payroll when every stage is obtainable
The transition to STP Section 2 reporting shall be gradual, and we encourage all prospects to motion the steps as quickly as they turn out to be accessible inside Xero Payroll. This shall be made clear to you inside your account, full with steerage on what must be executed (as would be the case for the phases to comply with).
Begin planning on your transition now
When you’ll have the time to make all related modifications, the perfect method is to put aside time to get began as quickly as attainable. This may require some planning to make sure you have all the knowledge wanted. If you happen to’re not sure about updating your payroll knowledge for STP Section 2, converse to your advisor.
Xero’s academic sources and transition instruments will aid you by the method
In search of extra data on STP Section 2? Take a look at our information to STP Section 2, timeline infographic and this helpful guidelines. You can even go to Xero Central or check with the ATO’s employer reporting pointers.
We’ll be sharing loads of data and academic sources over the subsequent few months because the transition continues. Maintain a watch out in Xero Payroll, Xero Central and throughout our social media channels for additional updates, and attain out when you have any questions – we’re right here to assist.