Once all the Payroll Settings have been updated and each step is marked as complete in the STP2 Resource Portal, the Xero Organisation is ready to shift into STP Phase 2.

In partnership with the ATO, Xero is rolling out this last step staggered across their customers, starting from the beginning of February 2022. Once the Xero Organisation is ready to transition, Payroll admins will be notified.

After the Business has enrolled on the second phase of STP, all earnings, previously reported under STP Phase 1, will automatically be reported in STP Phase 2. However, these will be reported under the original STP1 categories (i.e. all Overtime previously reported under STP1 will transition into STP2 as Gross Earnings, as this was the category where Overtime was reported in STP1).

All earnings reported directly through STP2 will be reported under the new STP2 categories (i.e. Overtime will now report as Overtime).

At the end of the Financial Year, employees will see one Income Statement in their MyGov account from their employer, not two.

Enrol your Xero Organisation into STP Phase 2

1. In Xero, go to Payroll > Single Touch Payroll
2. Select the [STP Phase 2] Tab
   
   è  The Single Touch Payroll - STP Phase 2 screen opens
   
   
   
   
3. Make sure steps 1 to step 3 are marked as Completed
   Note: Steps 1-3 should be marked as completed only when the relevant Payroll Settings have been reviewed and amended as per STP Phase 2 requirements
4. Click on [Get started]
   
   è  The Enrol in Single Touch Payroll Phase 2 screen opens
   
   
   
   
5. Click on [Enrol in STP Phase 2]
   
   è  A Confirmation message is displayed
   
   
   
   
6. Click on [Go to Pay Runs]
   
   è  Xero takes you to the Pay Run History screen