Where phase one was a way of reporting employees’ tax and super to the ATO, STP Phase 2 expands the program to capture more detailed information. This will reduce the compliance burden for employers and individuals, and help the admin side of things for Services Australia.
Although you need to provide the ATO with more information, the way you submit STP reports won’t change; how much it differs from your current process will depend on the nuances of your unique business and employees.
What, when, why?
The STP Phase 2 reporting deferral for Xero customers is 31 March 2023.
Get started in Xero Payroll:
Transition your existing employee profiles to be compliant. This includes new details, like whether they’re an employee or contractor.
Identify and update certain pay items with the new earnings categories defined by the ATO. Gross amounts for each income type will now need to be reported as a separate itemised amount, like overtime or allowances.
Update existing paid leave types to meet the new ATO reporting requirements.
We strongly recommend getting your payroll data ready as soon as possible to stay ahead of this important compliance deadline.
The sooner you can tick this off your to-do list, the more prepared you’ll be. Looking for more information? We can point you in the right direction.
Give us a call on 07 5500 0898 or email info@mjmaccountants.com.au.
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Source: Xero