The moment has come. Xero’s final step One-touch payroll phase 2 The rollout is now available to all customers. Once the payroll data has been updated and you have marked each step as complete in the STP2 portal, you will be able to register for the Phase 2 report (step 4 of the migration). This allows the business to share more information with his ATO and other government agencies every time they process a payment run.
With just over a month left until Xero’s reporting deferral ends on March 31, 2023, it’s an exciting time for Xero Payroll users to move into STP Phase 2 and begin mandatory reporting. We strongly encourage you to migrate now in just a few steps.
Read on for an overview of everything you need to know (and do) to do the migration. Remember that your advisor is always there if you need further guidance.
What happens if I don’t migrate in time?
To meet your 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’t we move to March?
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.
Several warnings are displayed during payment run processing. 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, many companies have yet to move to STP Phase 2. With this in mind, we have increased our communication. why? Our priority is to ensure that all our customers meet their reporting obligations by taking proactive action.
How do I complete each step of the transition to STP Phase 2 on Xero?
To begin your transition today, visit Xero Payroll’s STP Phase 2 portal and follow these steps:
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.
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.
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.
|As you go through the steps, be sure to mark each step As 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: Register for the STP Phase 2 Report
Once the payroll data has been updated and you have marked each step as complete in the STP2 portal, register for the Phase 2 report. This feature is now available to all customers. That means you can officially register and switch now.
when should i start?
now Now is the perfect time to complete the migration. Please note that if you miss the deadline, your ability to submit STPs may be impacted until STP 2 is set up. So, to avoid confusion in the future, we recommend checking this off your to-do list today.
All Australian employers must comply with the ATO’s requirements of 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 again 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 guideThis includes everything from step-by-step instructions to detailed explanations of vacation, income, and report categories.