By now, you’re possible conversant in Xero’s strategy to getting your payroll information prepared for Single Contact Payroll Section 2. This may see your small business construct on its current STP reporting to share extra data with the ATO and different authorities businesses every time you course of a pay run. And the excellent news is, we’re now arriving at stage three – the ultimate stage of Xero’s transition to STP Section 2.
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Xero’s STP Section 2 reporting deferral is thru to 31 March 2023, that means Xero Payroll clients could have till the New 12 months to activate STP Section 2. Nonetheless, you will get your information prepared as we speak. Actually, it is strongly recommended that you just full every stage sequentially as they’re made accessible in Xero Payroll. |
The three phases of your transition to STP Section 2 in Xero
Stage one – Delivered in August: The primary a part of this course of is transitioning your current worker profiles to be STP Section 2 compliant. This stage additionally contains offering further data when onboarding new workers to Xero Payroll.
Stage two – Delivered in September: You’ll must establish and replace sure pay gadgets with the brand new earnings classes outlined by the ATO for STP Section 2 reporting.
Stage three – Rolling out from late October: That is the ultimate stage within the STP Section 2 transition which can break down paid depart into further subcategories. We’ll assist you with a guided expertise in payroll so you’ll be able to simply replace current paid depart varieties to satisfy the brand new ATO reporting necessities.
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So that you’re forward of the deadline, it’s finest to transition your payroll information as quickly as doable. Head on over to the STP 2 Portal in Xero Payroll to progress by every stage. |
Stage three entails the introduction of latest paid depart classes
STP Section 2 introduces a set of latest ATO reporting classes to be used in your depart pay gadgets. You’ll now must categorise any current paid depart varieties you’ve gotten arrange in Xero Payroll. The classes accessible embody:
Different paid depart (Kind O)
- Annual depart
- Compassionate and bereavement depart
- Household and home violence depart
- Lengthy service depart
- Private (sick/carer’s) depart
- Rostered day without work
- Particular paid depart
- Examine depart
- Day without work in lieu
Ancillary and defence depart (Kind A)
- Neighborhood service depart
- Defence reserve depart
- Jury obligation depart
When most of these depart funds are accurately categorised in your STP submitting, the info might be extra simply shared throughout authorities departments (like Companies Australia). You’ll be able to be taught extra in regards to the technique of updating your depart classes in Xero Payroll right here:
We’ll be launching the depart pay merchandise transition device that will help you with this ultimate stage
Xero has constructed a transition device to help you with simply categorising your current depart pay gadgets to satisfy STP Section 2 reporting necessities. We’ve additionally been rolling out adjustments to Xero Payroll in preparation for STP Section 2 for a while. Consequently, it’s possible that a few of your depart pay gadgets could have already got the right reporting class assigned.
Right here’s what it’s good to do now
Head to the STP 2 Portal in Xero Payroll and progress by every stage of the transition course of to get your payroll information prepared for Section 2 reporting.
Stage one: Updating worker information to satisfy the brand new STP Section 2 submitting necessities.
Stage two: Updating earnings pay gadgets to the brand new STP Section 2 submitting necessities.
Stage three: Categorising your current paid depart varieties to the brand new submitting necessities.
| It’s necessary to mark every stage as full within the STP 2 Portal earlier than shifting ahead. This ensures your payroll information is correct and will assist cut back submitting errors later within the monetary 12 months. |
When you’ve accomplished all three phases, your small business can be prepared to modify over to STP 2 later within the monetary 12 months.
Don’t wait – get began on transitioning your payroll information as quickly as doable
When you’ll have time to make all related adjustments, the very best strategy is to get began now. This would possibly require some planning to make sure you have all the knowledge you want. If you happen to’re not sure about updating your payroll information for STP Section 2, communicate to your advisor.
We’ll begin reporting STP Section 2 to the federal government later this 12 months
Xero can be able to report your up to date payroll information to the ATO by mid-December 2022. Whereas there’s a deferral till 31 March 2022, we strongly advocate that you just get your information prepared for the transition as early as doable.
Xero’s academic sources and transition instruments will allow you to by the method
- Register for our upcoming STP Section 2 webinar
- Watch the depart transition video
- Be taught extra about updating paid depart gadgets in Xero Central
Searching for extra data on STP Section 2? Take a look at our Useful resource Hub, information to STP Section 2 and useful guidelines. It’s also possible to go to Xero Central or check with the ATO’s employer reporting tips.