The second is right here; the ultimate step of Xero’s Single Contact Payroll Section 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 Section 2 reporting – step 4 of the transition. This may see your enterprise share extra data with the ATO and different authorities businesses 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 Section 2 and start necessary reporting. We strongly advocate you make your transition at present with only a few steps.
Learn on for an summary of every part you’ll want to know (and do) to make the transfer, and bear 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?
To be able to meet your reporting obligations, in case you don’t transition by the 31 March deadline, your skill to file STP could also be affected till you’ve accomplished the STP 2 setup. When you’re uncertain about your transition standing or what actions you’ll want to take, converse to your advisor. Failure to adjust to these transition necessities might end in scrutiny and potential penalties from the ATO .
However can’t I simply transition in March?
STP could be 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 cause 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 Section 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 Section 2 as early as attainable.
Why is Xero making a lot noise about this?
With the deadline quickly approaching, numerous companies are but to make the transition to STP Section 2. With this in thoughts, we’ve been rising 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 Section 2 in Xero?
To start out your transition at present, head on over to the STP Section 2 Portal in Xero Payroll to progress by way of 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 Section 2 compliant. This implies offering new particulars, like whether or not they’re an worker or contractor. The first step additionally consists of offering further data when onboarding new workers to Xero Payroll. Extra data could be discovered right here.
Step two
You’ll have to establish and replace sure pay objects with the brand new earnings classes outlined by the ATO for STP Section 2 reporting. It’s because gross quantities for every revenue kind will now must be reported as a separate itemised quantity, like extra time or allowances. Head to Xero Central for extra particulars, together with a breakdown of the totally different earnings classes.
Step three
This step will 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 sorts to satisfy the brand new ATO reporting necessities. You may additionally discover that a few of your depart pay objects have already got the right reporting class assigned. Go to Xero Central to study extra about this stage.
| As you’re employed by way of the steps, you’ll want to mark every of them as full within the STP Section 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 Section 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 Section 2 reporting. This functionality is now out there to all clients, that means you’ll be able to formally enrol and make the change at present.
When ought to I get began?
Now is the most effective time to finish the transition. Keep in mind, in case you miss the deadline, your skill 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 listing at present to keep away from any disruption later down the road.
All using Australian companies should turn into STP Section 2 compliant – a requirement by the ATO. So in case you’re working along with your advisor to make the transition, consider they’re probably serving to many others do the identical. Keep affected person as they work by way of 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 Section 2?
That can assist you navigate the transition to STP Section 2 in Xero, we’ve gone forward and created a complete information. This has every part from step-by-step directions to detailed explainers on depart, earnings and reporting classes.
In search of extra data? Head to Xero Central or consult with the ATO’s employer reporting pointers. And don’t overlook to achieve out to your advisor for added assist.
