By now, the familiar One-touch payroll phase 2This builds on your existing STP reports to share more information with the ATO and additional government agencies every time you process a payment execution. Xero’s deferment is coming to an end soon, and the mandatory Phase 2 report is due March 31, 2023This means that all Xero Payroll users must transition to Phase 2 reporting standards.
Time is of the essence as deadlines are looming. Therefore, we strongly recommend that you migrate now. the good news is You can now migrate all your payroll data and opt-in to STP Phase 2 in just a few steps. In fact, starting in late January, we will gradually start allowing customers who have completed the transition to submit payment runs using his STP 2 (see below for details).
Don’t know where to start? Don’t worry. Below are answers to frequently asked questions. Additionally, our advisors are always available to help, so be sure to reach out if you need further guidance.
First things first, what happens if you don’t migrate in time?
To meet reporting obligations, if you do not transition by the March 31 deadline, your ability to submit STPs may be impacted until STP 2 is set up. If you’re unsure of your migration status or required actions, talk to your advisor. Failure to comply with these transition requirements may result in scrutiny and penalties from the ATO.
But can we move from next month?
STP can be a technical process, and the larger and more complex your business, the larger and more complex your future tasks will be. All of these are even greater reasons to move forward now.
Xero Payroll displays some warnings. what is this about?
If your current payroll data does not meet the new Phase 2 reporting requirements, a warning banner will appear on your payslip or within the employee’s payslip to alert you. We encourage all customers to take early steps to address these warnings by updating their data and opting into STP Phase 2 as soon as possible.
Why is Xero making a fuss about this?
With deadlines looming, our data suggests many employers are leaving things to the last minute, potentially at risk of additional scrutiny from the ATO. Our priority is to ensure all customers are migrated in advance, so we have increased our communication.
How do I complete each step of the transition to STP Phase 2 in Xero?
To begin your transition today, visit Xero Payroll’s STP Phase 2 portal and follow these steps:
first step
The first part of this process is migrating existing employee profiles to be STP Phase 2 compliant. This means providing new details, such as whether you are an employee or a contractor. Step 1 also includes providing additional information when enrolling new employees in Xero Payroll.you can find more information here.
step 2
You must identify and update specific pay items with the new revenue categories defined by the ATO for STP Phase 2 reporting. This is because the total amount for each type of income, such as overtime and benefits, must be reported as separate itemized amounts.go to zero central For more information, including a breakdown of the various revenue categories.
step 3
This step breaks down paid leave into additional subcategories. Support payroll guided experience to easily update existing PTO types to meet new ATO reporting requirements. Also, some of the PTO items may already be assigned the correct reporting category.visit zero central You can read more about this stage here.
don’t forget each step completion In the STP Phase 2 portal before proceeding. This ensures that your payroll data is accurate and helps reduce submission errors later on. |
Step 4: Switch to Phase 2 Reporting
Once your payroll data is updated and you mark each step as complete in the STP2 portal, you can opt in to Phase 2 reporting. We are working with the ATO to carefully roll out this feature to customers in late January/early February. When it’s time to switch, the payroll manager will be notified on his Xero.
When should I start?
Now is the time to migrate to meet your reporting requirements. The sooner you tick this off your to-do list, the more prepared you will be.
Remember that all Australian companies that employ you must comply with STP Phase 2. So if you’re working with an advisor to make the transition, be aware that they may be helping many others do the same. Please wait a moment. resource hub Also zero central for more information.
Where can I find more information about STP Phase 2?
To navigate the transition to STP Phase 2 at Xero, we have gone ahead and gguideIt contains everything you need to know (and do) to make the transition, from step-by-step instructions to detailed explanations about vacation, income, and report categories. .
Looking for more information? Go to zero central or see ATO Employer Reporting GuidelinesAlso, don’t forget to contact your advisor for additional support.