Single Touch Reporting Phase 2

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Get ready for STP Phase 2 in Xero

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 rollout will kick off within Xero in three stages. While stage one is rolling out from late August as planned, so Xero can ensure that stages two and three are equally as streamlined, they’ll be pushing their delivery dates out.

Rest assured, your business 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.

Resources to get STP Phase 2 ready

What you need to know for stage one of Xero’s STP Phase 2 rollout

Check out Xero’s blog that lays out the STP Phase 2 timeline and provides more detail on stage one. Read more »

Steps for a successful transition

Download Xero’s handy visual timeline of the STP Phase 2 rollout. Download now »

When should I start making changes?

Start planning and actioning your next steps as soon as possible to ensure a smooth transition to STP Phase 2 reporting before the deferral period ends. Omnis Group are Certified Xero Advisers and will continue to keep you updated on all the key dates and changes with STP Phase 2 in Xero. Call us in West Perth on 08 9380 3555.

Source: Xero Australia