We’re now arriving at the final stage of Xero’s transition to STP Phase 2. Rolling out from late October, stage three introduces a new set of ATO reporting categories for use in your practice’s leave pay items.
You will be notified within Xero Payroll when stage three is available.
XERO will support payroll admins with a transition tool (in Xero Payroll), so they can easily categorise your clients’ existing leave pay items to meet STP Phase 2 reporting requirements. Note that leave categories will need to be assigned to all paid leave items for STP Phase 2.
Here’s what you need to do now
Xero’s STP Phase 2 reporting deferral is until 31 March 2023, however the recommended approach is to get started now. Head to the STP Phase 2 Portal in Xero Payroll and progress through each stage of the transition process to get your clients’ payroll data ready.
Stage one: Updating employee records to meet the new STP Phase 2 filing requirements.
Stage two: Updating income pay items to the new STP Phase 2 filing requirements.
Stage three: Categorising existing paid leave types to the new filing requirements.
As you progress through the transition, you will need to mark each stage as complete in the STP 2 Portal before you can move forward to the next stage. This ensures your practice’s payroll data is accurate and could help reduce filing errors later in the financial year.
Given the importance of this major compliance program, XERO is dedicated to reach out to its clients, to ensure users are aware of STP Phase 2, and understand the steps required to transition. Feel free to reach out to us for advice, and guidance where required.
Resources to help you transition your leave pay items
 | Stage three rollout blog What you need to know for stage three of Xero’s STP Phase 2 roll out. Read more |
 | Resource hub Your one stop shop for key STP Phase 2 related info. View resource hub |
 | STP Phase 2 webinar sessions Discover what’s upcoming and what tools are available to help you manage your STP Phase 2 transition with confidence. Register now |
 | Watch leave item transition video Learn how to update your existing leave types so that leave payments are recorded correctly for STP Phase 2. Watch now |