The next stage of Single Touch Payroll (STP) journey is coming soon in Xero. The rollout will kick off in three stages. Stage one is rolling out from late August.
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: 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: 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.
For more information and videos from Xero, click here.
As always, if you need help or have any questions, please contact us.
