XERO USERS: You can now enrol in STP Phase 2 – it’s crunch time to complete your transition!
With just over a month until Xero’s reporting deferral comes to an end on 31 March 2023, it’s crunch time for Xero Payroll users to transition to STP Phase 2 and begin mandatory reporting. We strongly recommend you make your transition today with just a few steps.
IMPORTANT NOTE: All employing Australian businesses must become STP Phase 2 compliant – a requirement by the ATO. So if you’re not a Xero user – this is still the perfect reminder to get compliant on your software program!
The moment is here; the final step of Xero’s Single Touch Payroll Phase 2 roll out is now available to all Xero users. Once your payroll data is updated and you’ve marked each step as complete in the Xero STP2 Portal, you’ll be able to enrol in Phase 2 reporting – step four of the transition. This will see your business share more information with the ATO and other government agencies whenever you process a pay run.
Read on for some FAQs or visit the Xero website here for everything you need to know (and do) to make the move, and remember, your team at Highview is always there should you need further guidance.
Xero STP Phase 2 FAQ’s
Tell me, what happens if I don’t transition in time?
In order to meet your reporting obligations, if you don’t transition by the 31 March 2023 deadline, your ability to file STP may be affected until you’ve completed the Xero STP 2 setup. If you’re unsure about your transition status or what actions you need to take, speak to your Highview Accountant or Bookkeeper. Failure to comply with these transition requirements may result in scrutiny and potential penalties from the ATO.
But can’t I just transition in late March?
STP can be a technical process – and the larger and more complex your business is, the larger and more complex the task ahead will be. All of which is even more of a reason to get ahead now.
I’m seeing some warnings when processing a pay run in Xero – what are these about?
In instances where your current payroll data doesn’t meet the new Phase 2 reporting requirements, you’ll be alerted by warning banners within pay runs or employee payslips. Xero encourages all users to take early action on addressing these warnings by updating your data and opting-in to STP Phase 2 as early as possible.
Why is Xero making so much noise about this?
With the deadline rapidly approaching, a large number of businesses are yet to make the transition to STP Phase 2. With this in mind, Xero have been increasing their communications. Why? Because their priority is to ensure that all Xero users are meeting their reporting obligations by making the move ahead of time.
How do I complete each step of my transition to STP Phase 2 in Xero?
To start your transition today, head on over to the STP Phase 2 Portal in Xero Payroll to progress through each of the steps.
When should I get started?
Now is the best time to complete the transition. Remember, if you miss the deadline, your ability to file STP may be affected until you’ve completed the Xero STP 2 setup. Xero recommend ticking this off to your to-do list today to avoid any disruption later down the line.
Where can I find more information on STP Phase 2?
To help you navigate the transition to STP Phase 2 in Xero, they have created a comprehensive guide. This has everything from step-by-step instructions to detailed explainers on leave, earnings and reporting categories.
Looking for more information? Head to Xero Central or refer to the ATO’s employer reporting guidelines. And don’t forget to reach out to your Highview advisor for additional support!
All employing Australian businesses must become STP Phase 2 compliant – a requirement by the ATO. So, if you’re not a Xero user – ensure you are not a Xero user this is still a perfect reminder to get compliant on your software program!
Source: https://www.xero.com/au/