The next stage of the Single Touch Payroll (STP) journey is coming soon in Xero. STP Phase 2 will see Australian businesses build on their existing reporting to share more information each pay run.
When will STP Phase 2 reporting be available in Xero?
The updated STP Phase 2 rollout will kick off within Xero in three key stages from late August. Rest assured, you will have the time you need to transition. Xero will also be launching transition tools at each stage to help you work through the changes.
- Stage one – starting from late August: The first part of this process is transitioning your new and existing employee profiles to be STP Phase 2 compliant. Using the employee transition tool, you’ll be able to update existing employee records to capture relevant STP Phase 2 items – like whether they’re an employee or contractor. Any new staff members recorded after this release will automatically be STP 2 compliant.
- Stage two – coming soon: With the pay item transition tool, you can identify and replace non-compliant pay items with the new earnings categories defined by STP Phase 2. These new earnings categories are already available in Xero Payroll, like Directors’ fees and Bonuses and Commissions, if you want to get a head start.
- Stage three – coming soon: This is the final step in the STP Phase 2 transition and will break paid leave down into additional subcategories. With the leave transition tool, you can update existing leave categories to meet the new reporting requirements.
When should I start making changes?
To ensure you have the time you need to move over, Xero suggest actioning the transition steps as soon as you can. This might require some planning to ensure you have all the information needed. Once all of this is done, you can start to file STP Phase 2 compliant pay runs.
Additional resources;
Steps for a successful transition: Download Xero’s handy visual timeline of the STP Phase 2 rollout. Download Now
What you need to know for stage one of Xero’s STP Phase 2 roll out: Check out Xero’s latest blog that lays out Xero’s STP Phase 2 timeline and provides more detail on stage one. Read More
