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Sunday, January 28, 2024

What’s subsequent for Xero’s STP Part 2 roll out

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Modifications are on the horizon for Single Contact Payroll (STP) Part 2, the following stage of the STP journey. This can see Australian companies construct on their current reporting to share extra data every pay cycle. That can assist you make the transition, Xero is rolling out these adjustments in three phases forward of our deferral deadline later this yr, 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 up to the mark 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 following evolution of this reporting. The place part one had us reporting workers’ 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 facet of issues for the ATO and Companies Australia.

Though you will want to supply the ATO with extra data, the way in which you submit STP reviews gained’t change. How a lot it differs out of your present course of will depend upon the distinctive qualities of your corporation and workers.

The adjustments will kick off from this August inside Xero

There are a number of large moments on the horizon as we roll out the updates in three key phases. However don’t fear, we’re right here to assist you alongside the way in which as you make the transition. Listed here are the dates it is best to know:

Stage one – August: The primary a part of this course of is transitioning your new and current worker information to be STP Part 2 compliant. This implies offering new particulars on current employees, like whether or not they’re an worker or contractor. A few of you could already be testing out the brand new worker arrange course of as a part of our restricted launch so will likely be acquainted with these fields.

Stage two – August: Subsequent, you’ll have to establish 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 depart down into extra subcategories. We’ll assist you with a guided payroll expertise to extra simply replace current depart classes to fulfill the brand new reporting necessities.

Begin planning time in your transition

Whilst you’ll have the time to make all related adjustments, the very best method is to put aside time to get it achieved forward of the top of yr deadline. As soon as all of that is achieved, you possibly can file your first-ever STP Part 2 compliant pay runs. 

Xero’s instructional sources and transition instruments will assist you by the method

We’ll preserve 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 way in which. 

We’ll even be launching two transition instruments in August that can assist you work by the adjustments:

  • Worker document transition wizard: Utilizing this guided expertise, you’ll be capable of replace current worker information to seize related STP Part 2 objects.
  • Pay merchandise transition wizard: After your worker information are up to date, you’ll be capable of establish and replace pay objects and pay templates to the brand new STP Part 2 earnings classes utilizing this device.

EOFY reporting will keep the identical for FY22

It’s necessary to notice that each one Xero payroll prospects will proceed to report STP Part 1 in the meanwhile. The rollout of STP Part 2 pay objects and updates to the worker setup course of in Xero Payroll won’t 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 assist along with your EOFY reporting as ordinary. 

Get acquainted with the pay objects and stage one restricted launch

For those who meet the factors for the stage one restricted launch, you may get began by signing up in Xero Payroll. In any other case, now is an effective time to get acquainted with the brand new earnings classes and different additions already out there inside Xero. As all the time, it is best to search impartial recommendation as applicable for your corporation. 

We’ll proceed to let you understand as STP Part 2 adjustments are rolled out and be sure you have what it’s essential be prepared.

Discover out extra about STP Part 2

Searching for extra data on STP Part 2? Check out our information to STP Part 2 and this useful guidelines. You can too go to Xero Central or check with the ATO’s employer reporting tips. We’ll additionally share an infographic with all of the timeline particulars quickly. 

We’ll be sharing loads of data and academic sources over the following few months as we get nearer to those large updates. Hold an eye fixed out in Xero Payroll and throughout all our channels, and attain out in case you do have any questions – we’re right here to assist.

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