Over current months, we’ve been protecting you up to date on Xero’s Single Contact Payroll Part 2 roll out. This may see your online business construct on its current STP reporting to share extra data with the ATO and different authorities businesses everytime you course of a pay run. And now, we’re happy to announce that all three phases of the roll out can be found, which means you may get your payroll information STP Part 2 prepared immediately.
Unsure the place to begin? Don’t fear – we’ve compiled all the data you want beneath. What’s extra, your advisor is at all times there for assist, so be sure you attain out in case you want additional steerage.
|Xero’s STP Part 2 reporting deferral is thru to 31 March 2023, which means Xero Payroll prospects could have till the New 12 months to activate STP Part 2. Nonetheless, we strongly advocate getting your payroll information prepared as quickly as attainable to remain forward of this necessary compliance deadline.|
full every step of your transition to STP Part 2 in Xero
To begin your transition immediately, head on over to the STP Part 2 Portal in Xero Payroll to progress by way 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 Part 2 compliant. This implies offering new particulars, like whether or not they’re an worker or contractor. The 1st step additionally contains offering extra data when onboarding new workers to Xero Payroll. Extra data could be discovered right here.
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’s because gross quantities for every earnings sort will now should 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.
That is the ultimate step within the STP Part 2 transition which can break down paid depart into extra subcategories. We’ll assist you with a guided expertise in payroll so you’ll be able to simply replace current paid depart varieties to fulfill the brand new ATO reporting necessities. You may additionally discover that a few of your depart pay gadgets have already got the right reporting class assigned. Go to Xero Central to study extra about this stage.
|Don’t neglect to mark every step as full within the STP Part 2 Portal earlier than transferring ahead. This ensures your payroll information is correct and will assist scale back submitting errors later down the road.|
Reporting all objective allowances
With STP Part 2, all objective allowances have to be disaggregated, which means they’re reported individually to the worker’s hourly or atypical earnings price.
In Xero Payroll, you’ll be able to create a separate allowance pay merchandise with the appropriate type for every allowance included within the all objective quantity. Additionally, you will have the ability to choose an possibility for the allowance to be included within the calculation of extra time and paid depart charges.
That is meant to scale back the handbook burden on payroll admins to calculate and modify an worker’s extra time or paid depart inside their payslip. This happens when an worker’s award states that each the allowance is to be paid for all functions — together with when calculating depart and extra time. Head to Xero Central for extra data on these adjustments.
There’s no time like the current – begin transitioning your payroll information immediately
Now that each one three phases of Xero’s STP Part 2 roll out can be found, it’s time to transition your payroll information. As we come nearer to the deadline, the earlier you’ll be able to tick this off your to-do checklist, the extra ready you’ll be.
Bear in mind, all using Australian companies should develop into STP Part 2 compliant. So in case you’re working together with your advisor to make the transition, take note they’re possible 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.
Introducing Xero’s full information to STP Part 2
That can assist you navigate the transition to STP Part 2 in Xero, we’ve gone forward and created a complete guide. This has what you could know (and do) to make the transfer, from step-by-step directions to detailed explainers on depart, earnings and reporting classes.