The second is right here; the ultimate step of Xero’s Single Contact Payroll Section 2 roll out is now accessible to all prospects. As soon as your payroll knowledge is up to date and also you’ve marked every step as full within the STP2 Portal, you’ll have the ability to enrol in Section 2 reporting – step 4 of the transition. This may 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 Section 2 and start obligatory reporting. We strongly suggest you make your transition at the moment with just some steps. 

Learn on for an summary of all the things it is advisable to know (and do) to make the transfer, and keep in mind, your advisor is at all times there must you want additional steering. 

Inform me, what occurs if I don’t transition in time?

In an effort to meet your reporting obligations, in case you don’t transition by the 31 March deadline, your capacity to file STP could also be affected till you’ve accomplished the STP 2 setup. If you happen to’re uncertain about your transition standing or what actions it is advisable to take, communicate 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 likely be. All of which is much more of a purpose 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 knowledge 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 prospects to take early motion on addressing these warnings by updating your knowledge 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, a lot of companies are but to make the transition to STP Section 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 prospects 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 the moment, head on over to the STP Section 2 Portal in Xero Payroll to progress by means of every of the next steps: 

The 1st 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 1st 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 must determine and replace sure pay gadgets with the brand new earnings classes outlined by the ATO for STP Section 2 reporting. It is because gross quantities for every earnings sort will now must be reported as a separate itemised quantity, like additional 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 go away into further subcategories. We’ll assist you with a guided expertise in payroll so you may simply replace current paid go away varieties to fulfill the brand new ATO reporting necessities. You may additionally discover that a few of your go away pay gadgets have already got the proper reporting class assigned. Go to Xero Central to be taught extra about this stage.

Step 4: Enrol in STP Section 2 reporting

As soon as your payroll knowledge 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 accessible to all prospects, that means you may formally enrol and make the change at the moment. 

When ought to I get began? 

Now is the very best time to finish the transition. Keep in mind, in case you miss the deadline, your capacity to file STP could also be affected till you’ve accomplished the STP 2 setup. So, we suggest ticking this off to your to-do listing at the moment to keep away from any disruption later down the road.

All using Australian companies should grow to be STP Section 2 compliant – a requirement by the ATO. So in case you’re working along with your advisor to make the transition, remember they’re possible serving to many others do the identical. Keep affected person as they work by means 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 will help you navigate the transition to STP Section 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 discuss with the ATO’s employer reporting pointers. And don’t neglect to succeed in out to your advisor for added assist.