As you may already be aware, it is time to start becoming Single Touch Payroll (STP) Phase 2 compliant. If you want to know more about what Single Touch Payroll Phase 2 involves click here.
The Xero transition to STP 2 reporting is being rolled out in three phases. You should have received an email recently from us outlining the rollout and the steps involved.
The three phases to transition you to STP 2 with Xero are:
1. Employee transition. STP 2 requires existing employee records to be updated to capture relevant items such as whether they are an employee or contractor, and other information relating to tax rates. All new employee setups are already using the updated template so you may have noticed a change if you have entered a new employee recently.
2. Pay item transition. All pay items will need to be reviewed and any items not compliant with STP Phase 2 will need to be replaces with new compliant earnings categories.
3. Leave transition. Paid leave is being broken down into additional subcategories for STP Phase 2 so existing leave categories will need to be updated to meet the new reporting requirements.
Step 1 is available for transition now, with Step 2 coming very soon.
What next?
You can choose to transition across yourselves, or we can manage it for you – the choice is yours. Xero has a deferral in place for all customers until 31st March 2023 so there is no rush.
However, at Diverse we like to get ahead of the curve, so for those clients who wish to lighten the burden and let us manage the process we are starting to transition our clients early to ensure that you are compliant before the deadline.
What will our help cost?
Our project fees will be as follows:
- Clients <10 employees STP Phase 2
Compliance will be $149 ex GST - Clients > 10 employees STP Phase 2
Compliance will be $299 ex GST
Please let me know if you would like us to start the ball rolling for you or if you will manage this yourself.
