The extension of the STP reporting framework [Phase 2] has been released and will increase the amount of information available through STP, helping reduce the reporting burden for employers.
For businesses using Xero as their accounting software, Xero has now released its STP Phase 2 functionality into Payroll. If you need help implementing this new update, reach out to our team at email@example.com or give us a buzz on 1300BDEPOT as we’re happy to help!
You may have noticed some warnings or alerts in Xero prompting you to update the payroll records. The key changes in STP Phase 2 are:
- Breaking down gross income into components – Previously STP reported gross income only, while STP Phase 2 reports components that make up gross income.
- Including employment and taxation conditions – E.g., employment basis, TFN declaration details and termination details.
- Include income types.
- Include country codes if you are making payments to Australian residents working overseas.
- It gives you the option to include details of child support garnishees in STP.
- Include previous payroll software IDs – Particularly handy if you transition payroll systems within the same income year.
If you’d like to see all of the changes, the full list is available on the ATO’s website.
what you need to do
The transition deadline for STP Phase 2 was 1 January 2023, however, Digital Service Providers [DSPs] such as Xero applied for an extension on behalf of their customers.
Xero customers have been granted an extension until 31 March 2023 to implement Phase 2 reporting, and Xero has now released its STP Phase 2 functionality into Payroll, ready for you to transition to.
Regardless of which DSP you use, if you need help implementing this new update, reach out to our team as we’re happy to help!
The ATO wants to be flexible with this change, so if you do need additional time to complete the transition, you can apply online. Learn more here.
need help with the transition?
The businessDEPOT team is ready to help you. Our approach is as follows:
- We will undertake a review of payroll settings, with particular attention paid to income types and employee details to ensure that the correct detail will be submitted.
- Update payroll for any changes and corrections
- Enable reporting under STP Phase 2.
we’re here to help
If you’re looking for help with the STP Phase 2 release or any other bookkeeping and business matters, we’ve got your back! Don’t hesitate to reach out to us at firstname.lastname@example.org or give us a buzz on 1300 BDEPOT.
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