The second is right here; the ultimate step of Xero’s Single Contact Payroll Part 2 roll out is now out there to all clients. As soon as your payroll information is up to date and also you’ve marked every step as full within the STP2 Portal, you’ll be capable of enrol in Part 2 reporting – step 4 of the transition. It will see your enterprise share extra data with the ATO and different authorities companies everytime you course of a pay run.
With simply over a month till Xero’s reporting deferral involves an finish on 31 March 2023, it’s crunch time for Xero Payroll customers to transition to STP Part 2 and start necessary reporting. We strongly advocate you make your transition right now with only a few steps.
Learn on for an summary of all the things you want to know (and do) to make the transfer, and keep in mind, your advisor is all the time there must you want additional steerage.
Inform me, what occurs if I don’t transition in time?
With a purpose to meet your reporting obligations, should you don’t transition by the 31 March deadline, your capability to file STP could also be affected till you’ve accomplished the STP 2 setup. In case you’re not sure about your transition standing or what actions you want to take, communicate to your advisor. Failure to adjust to these transition necessities could lead to scrutiny and potential penalties from the ATO .
However can’t I simply transition in March?
STP generally is a technical course of – and the bigger and extra advanced your enterprise is, the bigger and extra advanced the duty forward will probably be. All of which is much more of a motive to get forward now.
I’m seeing some warnings when processing a pay run – what are these about?
In cases the place your present payroll information doesn’t meet the brand new Part 2 reporting necessities, you’ll be alerted by warning banners inside pay runs or worker payslips. We encourage all clients to take early motion on addressing these warnings by updating your information and opting-in to STP Part 2 as early as doable.
Why is Xero making a lot noise about this?
With the deadline quickly approaching, a lot of companies are but to make the transition to STP Part 2. With this in thoughts, we’ve been growing our communications. Why? As a result of our precedence is to make sure that all of our clients are assembly their reporting obligations by making the transfer forward of time.
How do I full every step of my transition to STP Part 2 in Xero?
To begin your transition right now, head on over to the STP Part 2 Portal in Xero Payroll to progress by every of the next steps:
The first step
The primary a part of this course of is transitioning your current worker profiles to be STP Part 2 compliant. This implies offering new particulars, like whether or not they’re an worker or contractor. The first step additionally contains offering further data when onboarding new staff to Xero Payroll. Extra data will be discovered right here.
Step two
You’ll have to establish and replace sure pay gadgets with the brand new earnings classes outlined by the ATO for STP Part 2 reporting. It is because gross quantities for every earnings sort will now have to be reported as a separate itemised quantity, like time beyond regulation or allowances. Head to Xero Central for extra particulars, together with a breakdown of the completely different earnings classes.
Step three
This step will break down paid go away into further subcategories. We’ll help you with a guided expertise in payroll so you possibly can simply replace current paid go away varieties to fulfill the brand new ATO reporting necessities. You might also discover that a few of your go away pay gadgets have already got the right reporting class assigned. Go to Xero Central to study extra about this stage.
| As you’re employed by the steps, make sure you mark every of them as full within the STP Part 2 Portal earlier than shifting ahead. This ensures your payroll information is correct and will assist scale back submitting errors later down the road. |
Step 4: Enrol in STP Part 2 reporting
As soon as your payroll information is up to date and also you’ve marked every step as full within the STP2 Portal, it’s time to enrol to Part 2 reporting. This functionality is now out there to all clients, that means you possibly can formally enrol and make the change right now.
When ought to I get began?
Now is the perfect time to finish the transition. Keep in mind, should you miss the deadline, your capability to file STP could also be affected till you’ve accomplished the STP 2 setup. So, we advocate ticking this off to your to-do checklist right now to keep away from any disruption later down the road.
All using Australian companies should turn out to be STP Part 2 compliant – a requirement by the ATO. So should you’re working along with your advisor to make the transition, be mindful they’re doubtless serving to many others do the identical. Keep affected person as they work by the method, and within the meantime, take a look at our Useful resource Hub or Xero Central for extra data.
The place can I discover extra data on STP Part 2?
That can assist you navigate the transition to STP Part 2 in Xero, we’ve gone forward and created a complete information. This has all the things from step-by-step directions to detailed explainers on go away, earnings and reporting classes.
In search of extra data? Head to Xero Central or seek advice from the ATO’s employer reporting tips. And don’t overlook to succeed in out to your advisor for added help.
