All three stages of Xero’s STP Phase 2 roll out are now available – it’s time to make the transition

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...

Introducing start and end times in Xero Me

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...
New Law Introduced To Prevent Casual Employees Double-Dipping: What You Need To Do Now

New Law Introduced To Prevent Casual Employees Double-Dipping: What You Need To Do Now

On 18 December 2018 the Government varied the Fair Work Regulations 2009 to allow employers, in certain circumstances, to offset the casual loading paid to an employee against certain entitlements that may otherwise be owed to the employee if they are found in the future to be a permanent employee. This change to the law has been introduced in reaction to the case of Workpac v Skene [2018] FCAFC 131  where an employee classified as a casual employee (and paid a loading) was later found by the court to be a permanent employee. In that case the court ordered the employer to back pay the employee the annual leave he should have accrued, despite the fact that he had been paid a casual loading to compensate him for not being entitled to paid leave. Casual loading offsetting NES entitlements For employers to benefit from the new law, certain criteria need to be met including that: “the employer pays the person an amount (the loading amount) that is clearly identifiable as an amount paid to compensate the person for not having one or more relevant NES entitlements during a period (the employment period)”. The reference to “relevant NES entitlements” are to those matters set out in the National Employment Standards in the Fair Work Act 2009 which do not apply to casual employees and include entitlements such as paid annual leave and personal/carer’s leave, redundancy pay, etc. The new law acts retrospectively as well as going forward – so if an employee makes a claim in the future in respect of periods of employment in the past, the Regulations will still apply. In our view, there are two matters which employers will...