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 accessible to all clients. 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 can see your corporation 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 necessary reporting. We strongly advocate you make your transition right now with just some steps.
Learn on for an outline of every thing it’s worthwhile to know (and do) to make the transfer, and bear in mind, your advisor is all the time there do you have to want additional steerage.
Inform me, what occurs if I don’t transition in time?
With a purpose to meet your reporting obligations, if you happen to 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. For those who’re not sure about your transition standing or what actions it’s worthwhile 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 corporation is, the bigger and extra advanced the duty forward will likely 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 situations 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 clients to take early motion on addressing these warnings by updating your knowledge and opting-in to STP Section 2 as early as doable.
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 begin your transition right now, head on over to the STP Section 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 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 1st step additionally contains offering extra info when onboarding new workers to Xero Payroll. Extra info could be discovered right here.
You’ll must 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 additional time or allowances. Head to Xero Central for extra particulars, together with a breakdown of the completely different earnings classes.
This step will break down paid go away into extra subcategories. We’ll assist you with a guided expertise in payroll so you’ll be able to simply replace present paid go away varieties to fulfill the brand new ATO reporting necessities. You might also discover that a few of your go away pay objects have already got the right reporting class assigned. Go to Xero Central to be taught extra about this stage.
|As you’re employed by way of the steps, remember to mark every of them as full within the STP Section 2 Portal earlier than shifting ahead. This ensures your payroll knowledge 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 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 clients, that means you’ll be able to formally enrol and make the swap right now.
When ought to I get began?
Now is one of the best time to finish the transition. Keep in mind, if you happen to 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 listing right now to keep away from any disruption later down the road.
All using Australian companies should develop into STP Section 2 compliant – a requirement by the ATO. So if you happen to’re working together with your advisor to make the transition, have in mind they’re seemingly 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 info.
The place can I discover extra info 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 guide. This has every thing from step-by-step directions to detailed explainers on go away, 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 succeed in out to your advisor for added assist.