Adjustments are on the horizon for Single Contact Payroll (STP) Part 2, the subsequent stage of the STP journey. It will see Australian companies construct on their current reporting to share extra data every pay cycle. That will help you make the transition, Xero is rolling out these modifications in three phases forward of our deferral deadline later this 12 months, with the vast majority of updates out there from August.
We beforehand shared a broad overview of this rollout. Now, as we get nearer to the launch, we wish to carry you in control on once you’ll see these updates in Xero.
STP Part 2 will replace the way you file STP
By now, most Australian employers file utilizing STP. It’s a means of capturing related data and sharing it with the ATO every pay run – and why we’ve bid farewell to EOFY fee summaries. STP Part 2 is the subsequent evolution of this reporting. The place part one had us reporting staff’ tax and tremendous on to the ATO, STP Part 2 expands this system to seize extra detailed data. This reduces the compliance burden for employers and people, and helps the admin aspect of issues for the ATO and Companies Australia.
Though you will want to offer the ATO with extra data, the best way you submit STP stories received’t change. How a lot it differs out of your present course of will rely upon the distinctive qualities of what you are promoting and staff.
The modifications will kick off from this August inside Xero
There are a number of massive moments on the horizon as we roll out the updates in three key phases. However don’t fear, we’re right here to help you alongside the best way as you make the transition. Listed below are the dates it’s best to know:
Stage one – August: The primary a part of this course of is transitioning your new and current worker data to be STP Part 2 compliant. This implies offering new particulars on current workers, like whether or not they’re an worker or contractor. A few of chances are you’ll already be testing out the brand new worker arrange course of as a part of our restricted launch so might be accustomed to these fields.
Stage two – August: Subsequent, you’ll have to determine and replace pay objects with the brand new earnings classes outlined by STP Part 2. These new earnings classes are already out there in Xero Payroll, like Administrators’ charges and Bonuses and Commissions, if you wish to get a head begin.
Stage three – October: That is the ultimate step within the STP Part 2 transition and can break paid go away down into extra subcategories. We’ll help you with a guided payroll expertise to extra simply replace current go away classes to satisfy the brand new reporting necessities.
Begin planning time in your transition
Whilst you’ll have the time to make all related modifications, one of the best method is to put aside time to get it performed forward of the top of 12 months deadline. As soon as all of that is performed, you possibly can file your first-ever STP Part 2 compliant pay runs.
Xero’s instructional sources and transition instruments will provide help to by the method
We’ll maintain you up to date at each step, with loads of instructional sources, like webinars, movies and how-to articles throughout channels like Xero Central and social media, in addition to in payroll updates to information you alongside the best way.
We’ll even be launching two transition instruments in August that can assist you work by the modifications:
- Worker document transition wizard: Utilizing this guided expertise, you’ll be capable of replace current worker data to seize related STP Part 2 objects.
- Pay merchandise transition wizard: After your worker data are up to date, you’ll be capable of determine and replace pay objects and pay templates to the brand new STP Part 2 earnings classes utilizing this instrument.
EOFY reporting will keep the identical for FY22
It’s vital to notice that every one Xero payroll clients will proceed to report STP Part 1 in the interim. The rollout of STP Part 2 pay objects and updates to the worker setup course of in Xero Payroll is not going to have an effect on reporting or any year-to-date (YTD) values despatched to the ATO, together with the STP finalisation course of in July 2022. Your advisor can help along with your EOFY reporting as ordinary.
Get accustomed to the pay objects and stage one restricted launch
In the event you meet the standards for the stage one restricted launch, you will get began by signing up in Xero Payroll. In any other case, now is an effective time to get accustomed to the brand new earnings classes and different additions already out there inside Xero. As all the time, it’s best to search unbiased recommendation as applicable for what you are promoting.
We’ll proceed to let you understand as STP Part 2 modifications are rolled out and ensure you have what it’s essential to be prepared.
Discover out extra about STP Part 2
In search of extra data on STP Part 2? Check out our information to STP Part 2, timeline infographic and this useful guidelines. You too can go to Xero Central or seek advice from the ATO’s employer reporting pointers.
We’ll be sharing loads of data and academic sources over the subsequent few months as we get nearer to those massive updates. Maintain an eye fixed out in Xero Payroll and throughout all our channels, and attain out if you happen to do have any questions – we’re right here to assist.
