You may have received an error when attempting to file your Single Touch Payroll (STP) in Xero or MYOB in the last few days. This is due to the ATO updating their systems over the weekend requiring more JobKeeper information with your payroll lodgments.
If you have been receiving JobKeeper you need to make one off changes in your payroll settings to ensure your STP is filed correctly while still ensuring you are able to receive JobKeeper 2.0 in the future.
Please note: If you are not eligible for the JobKeeper extension post 28th of September, it is possible you could still become eligible during the December quarter so we DO NOT want to ‘STOP JOBKEEPER’ for any employees at this stage.
If you are not eligible in the months after September 2020, then you just do not lodge the monthly JobKeeper declarations. This will keep your JobKeeper open for the possibility of becoming eligible in the December quarter.
You now need to associate either Tier 1 or Tier 2 to each JobKeeper enrolled employee in Xero (or your alternative payroll system).
From 28 September 2020, the flat rate of JobKeeper will be replaced with a two-tiered system based on the employee’s employment hours:
28 September 2020 to 3 January 2021
Full Rate: $1,200
Reduced Rate: $750
Until the tiers are allocated, your STP payroll filing will fail. More detailed Xero instructions can be found here: Employee Tiers
As always, we are here to help guide you through these new processes.