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Single Touch Payroll

In the 2019–20 Budget, the Government announced that Single Touch Payroll (STP) would be expanded to include additional information.

Under Single Touch Payroll Phase 2, the Australian Government will require all employers to report additional information through STP on or before each payday. This information will include details such as income or payment type and the reason for any cessation of employment.

Australian businesses that have employees on their payroll will be impacted by this change. All Australian Xero customers who use Xero payroll will need to be aware of changes in STP Phase 2.

  

Xero Single Touch Payroll Phase 2 Countdown

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For Employers

Is my payroll system STP Compliant? 

Most cloud payroll software providers are STP Compliant. 

Xero has been granted a deferral on the start date of the STP Phase 2 for our payroll software, and applies to all new and existing customers.

This means that all customers reporting STP using Xero Payroll have until 31 March 2023 to report their first STP Phase 2 pay run, instead of the 1 January 2022 ATO deadline. 

This gives our Xero Payroll customers more time to ensure that payroll records are STP Phase 2 compliant.

If you do not use a cloud software service or have not sought an alternative software provider to submit your payroll information, now is the time to do so. You must be STP Phase 2 compliant by January 1, 2022. 

We offer services to accommodate your needs. From a full Xero conversion to housing just your payroll information online we can provide a solution for you. 

What changes will be made? 

Under STP Phase 2, you need to report additional information to the ATO in a few new areas. You can find the full details on the ATO website.

 How will my EOFY pay reconcilliations change? 

To process your EOFY payroll there are limited changes. However, one this process has been completed – there WILL NOT BE payment summaries to distribute to your employees. This will need to be explained to all staff members of your business as they will need to access their EOFY tax information from their MyGov account. 

IBSNQ Clients – we will work with you to submit your final pay run for the financial year and process your EOFY reconcilliations. 

General Xero users can find information/instructions on completing this process here.

 

 

For Employees

What will change for me?

 There is only one significant change for employees, you will no longer receive your payment summary at the end of financial year. You will still receive payslips as normal and nothing will change in your normal payruns. 

How do I access my payment summaries at the end of the year?

You will no longer receive payment summaries in July. Your payroll information for tax purposes is accessible from your MyGov account. As it is an ATO requirement, your employer does not have a choice to issue payment summaries or not. 

Book Appointment for Single Touch Payroll Discussion

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