Now you can enrol in STP Section 2 – it’s crunch time to finish your transition

The second is right here; the ultimate step of Xero’s Single Contact Payroll Section 2 roll out is now obtainable to all prospects. 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 to enrol in Section 2 reporting – step 4 of the transition. It will see your enterprise share extra info 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 advocate you make your transition at the moment with just some steps. 

Learn on for an outline of every little thing it is advisable know (and do) to make the transfer, and bear 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?

So as to meet your reporting obligations, should you don’t transition by the 31 March deadline, your means to file STP could also be affected till you’ve accomplished the STP 2 setup. When you’re not sure about your transition standing or what actions it is advisable take, converse to your advisor. Failure to adjust to these transition necessities could end in scrutiny and potential penalties from the ATO .

However can’t I simply transition in March?

STP is usually a technical course of – and the bigger and extra complicated your enterprise is, the bigger and extra complicated the duty forward will probably 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 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 prospects to take early motion on addressing these warnings by updating your information and opting-in to STP Section 2 as early as potential. 

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 rising 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 begin your transition at the moment, head on over to the STP Section 2 Portal in Xero Payroll to progress via every of the next steps: 

The first step

The primary a part of this course of is transitioning your present 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 contains offering extra info when onboarding new workers to Xero Payroll. Extra info will be discovered right here.

Step two

You’ll must determine and replace sure pay objects with the brand new earnings classes outlined by the ATO for STP Section 2 reporting. It is because gross quantities for every earnings kind will now have to 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 completely different earnings classes.

Step three

This step will 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 present paid depart varieties 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 via the steps, be sure you 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 cut 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 obtainable to all prospects, that means you’ll be able to formally enrol and make the change at the moment. 

When ought to I get began? 

Now is one of the best time to finish the transition. Bear in mind, should you miss the deadline, your means 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 record at the moment to keep away from any disruption later down the road.

All using Australian companies should turn out to be STP Section 2 compliant – a requirement by the ATO. So should you’re working along with your advisor to make the transition, take note they’re seemingly serving to many others do the identical. Keep affected person as they work via the method, and within the meantime, try our Useful resource Hub or Xero Central for extra info.

The place can I discover extra info 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 guide. This has every little thing from step-by-step directions to detailed explainers on depart, earnings and reporting classes. 

Searching for extra info? Head to Xero Central or discuss with the ATO’s employer reporting guidelines. And don’t neglect to achieve out to your advisor for extra assist.