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It’s been an interesting year for employers as they grapple with the changes to Single Touch Payroll. Even the major software companies (Xero springs to mind) have taken longer than expected to implement changes.
I was speaking with a cafe/restaurant owner in the Central Coast recently who was trying to implement Deputy (for staff roster and scheduling) with Xero and was having trouble with the STP Phase 2 component. She mentioned that the issue appeared to be with Deputy but I did some research using ChatGPT and this is what the Artificial Intelligence software told me!
What I found most fascinating in this research is the comparison between the information that Google offered in it’s search engine compared to what OpenAI provided via their ChatGPT software:
Xero is a cloud-based accounting software that is widely used by small and medium-sized businesses in Australia. Single Touch Payroll (STP) is a reporting system introduced by the Australian government to simplify payroll reporting obligations for employers. The STP Phase 2 reporting requirements were implemented on 1st January 2022, and since then, Xero has been struggling to integrate these changes into their software.
One of the major issues Xero has been experiencing with STP Phase 2 integration is the software’s inability to handle the large volume of data required for reporting. The STP Phase 2 requires employers to report every pay event, including
- deductions, and
- superannuation payments.
This has significantly increased the data volume required to be processed, making it difficult for Xero to handle the amount of data efficiently.
Another issue that Xero has been struggling with is the real-time reporting requirement. STP Phase 2 requires employers to report payroll data to the ATO every time they pay their employees. Xero has been finding it challenging to process the data and transmit it to the ATO in real-time. This has led to delays and inaccuracies in reporting.
The introduction of STP Phase 2 has also led to changes in the way employers report fringe benefits tax (FBT). Xero’s software has struggled to accommodate these changes, resulting in errors and incorrect reporting of FBT data.
Furthermore, the STP Phase 2 changes have led to confusion for Xero’s users, who have found it challenging to navigate the new reporting requirements. Xero has been working on updating their software and providing resources to help their users understand the changes, but this has not been sufficient for some users who are still experiencing difficulties.OpenAI’s ChatGPT 14th Feb 2023
Updated Xero Payroll Training Course
The Xero Payroll Course now includes a 15 page additional education guide to implementing Single Touch Payroll Phase 2. This includes:
- Different setup options for employees
- More detailed pay item recording and reporting
- Updated information about updated stages to enrol in STP with the ATO
What have you experienced?
If you have experience in this field please register for our Bookkeeping Talent Pool as we are experiencing some demand from small business owners for help.-- Did you like what you read? Want to receive these posts via email when they are published? Subscribe below.