by admin | Dec 12, 2022 | Uncategorized
Over recent months, we’ve been keeping you updated on Xero’s Single Touch Payroll Phase 2 roll out. This will see your business build on its existing STP reporting to share more information with the ATO and other government agencies whenever you process a pay run. And now, we’re pleased to announce that all three stages of the roll out are available, meaning you can get your payroll data STP Phase 2 ready today. Not sure where to start? Don’t worry – we’ve compiled all the information you need below. What’s more, your advisor is always there for support, so be sure to reach out if you need further guidance.Xero’s STP Phase 2 reporting deferral is through to 31 March 2023, meaning Xero Payroll customers will have until the New Year to activate STP Phase 2. However, we strongly recommend getting your payroll data ready as soon as possible to stay ahead of this important compliance deadline. How to complete each step of your transition to STP Phase 2 in Xero To start your transition today, head on over to the STP Phase 2 Portal in Xero Payroll to progress through each of the following steps: Step one The first part of this process is transitioning your existing employee profiles to be STP Phase 2 compliant. This means providing new details, like whether they’re an employee or contractor. Step one also includes providing additional information when onboarding new employees to Xero Payroll. More information can be found here. Step two You’ll need to identify and update certain pay items with the new earnings categories defined by the ATO for STP Phase 2 reporting. This is... by admin | Jul 19, 2022 | Uncategorized
We’re really excited to share that in the weeks ahead, we’re rolling out new functionality in the Xero Me mobile app that will let employees record their start, end and unpaid break times. This new feature will help you keep accurate payroll records and save time on manual processes such as chasing timesheets or reviewing information before doing payruns in Xero. It also helps with your record- keeping requirements as an Australian employer under the Fair Work Act 2009. Making employee management easy This new Xero Me feature is fast, easy to use and seamlessly connected with Xero Payroll. You’ll not only have visibility of the start, end and unpaid break times entered by employees, but you’ll also be able to easily view any employee notes added to time entries, for easy communication. Please note: there are no changes to the approval workflow for team manager roles processing timesheets for payruns on web or mobile. Here’s a handy infographic that you can share with your employees, to help them enter their start, end and break times in Xero Me. You can download the infographic here. Xero Me is included with every Xero Payroll subscription and is designed to make employee management easier for small businesses. It allows your employees to access payslips, submit and manage timesheets, leave requests and claim expenses – all in one place. Empowering your employees to self-serve these critical people tasks means less manual work for you, while helping to support a faster pay run. We’re working on some other exciting features for Xero Me and will keep you updated. As always, we’ll continue listening to the product ideas you’d like to see... 
by admin | Jul 3, 2021 | General
The rate of compulsory super that your employer pays you will rise to 10% from 1 July 2021. The Superannuation Guarantee (SG) is the minimum amount that an employer must pay into your super fund if you are an eligible employee. As of 1 July 2021, the SG will rise from 9.5% to 10% of your ordinary time earnings. Ordinary time earnings salary is generally what you earn for your ordinary hours of work, including commissions, shift loadings and allowances, but not overtime payments. Under the current legislated timetable, the SG rate rises to 10% on 1 July 2021 and then incrementally by 0.5% each financial year to 12% by 1 July 2025. As a result, employers need to update their payroll settings to reflect the 0.5% increase in the SG rate. More importantly, employers and employees will be required to consider the future impact of the increased SG costs. What will the effect be on employers and employees? The terms of existing and new salary packages will dictate the financial impact of the SG rate increase. For example:- Will the additional 0.5% SG contribution be added to the existing salary package (Therefore, no change to employee net pay)?ORWill the additional 0.5% SG contribution be incorporated into the existing salary package (Reduction to employee net pay)?Furthermore, it will be important to look into the relevant employee awards for the effect of the increase in the SG rate. DateSG Rate1 July 202110.0%1 July 202210.5%1 July 202311.0%1 July... 
by admin | Aug 9, 2019 | Accounting Software
Location, location, location! Now, a new feature in the Xero Projects iOS app suggests time entries against a project based on the time spent at a particular location. This means no more manual tracking of how long you (or your employees) have spent on the job. Rather than track every move, the app uses geo-fencing to register when you arrive at a site and then automatically stops the clock when you leave. Geo-fencing means your device recognises it has entered a set location and that triggers an action – in this case to start timing how long you spend there. Xero only stores your location data on your mobile device. It’s not saved anywhere else and the details aren’t shared, so your privacy is maintained and you operate in an environment of trust. (You can check out our privacy terms for more about how we collect and store your data.) Because the locations that you add to a project aren’t shared, each team member needs to set up the locations for the jobs they’re working on in order to get automatic time suggestions. How it works Using the location-based time entry feature has minimal impact on your device battery and doesn’t use any mobile data. Here’s how it works: Make sure you have the latest version of the Xero Projects iOS app. Select a project and tap the + icon to add one or more locations for a job. Tap Always when prompted to allow location access. In the time entries tab, view suggestions based on how much time you spent at each location. Review, and save or discard the suggestions. Read more in the... 
by admin | Mar 25, 2019 | Small Business Tips & Tricks
What This Resource is About When ATO officers are reviewing claims for home office running expenses and electronic device expenses, there is a need to establish that expenditure has been incurred, and the extent of deductibility. This summary of the ATO practice statement concerns acceptable verification approaches for: home office running expenses – home office electricity, gas and cleaning, and decline in value (previously known as depreciation) of home office items such as furniture and furnishings – Not deductions for computer consumables and stationery. home office occupancy expenses such as rent, mortgage interest, council and water rates, or house insurance premiums. Only taxpayers using a part of their home exclusively as a place of business can claim a deduction for occupancy expenses. electronic device usage expenses – phone calls and internet (data) expenses, but not deductions for the decline in value of electronic devices. These should be calculated and claimed in accordance with Division 40 of the Income Tax Assessment Act 1997, and the annual guide titled ‘Guide to depreciating assets’ available on ato.gov.au or through the ATO Publication Ordering Service. Basic Principles Pre-requisites for deductions include the conditions that: the taxpayer has actually incurred the expenses and has not been reimbursed (see section 3 of this practice statement), and there must be a real connection between the use of the home office or device and the taxpayer’s income-producing work. If the taxpayer uses their home office or device for work purposes and private purposes, only the expense related to the work usage can be claimed as a deduction (see section 4 of this practice statement). In effect, a taxpayer can claim a deduction for the ‘additional’ expenses they incur,...
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