All information in this article, which pertains to the ATO’s Single Touch Payroll obligation, was sourced from the Australian Taxation Office and payroll software providers. Deloitte Private has published this information in its Help Centre to assist you with STP and have not verified or tested its accuracy.
What is Single Touch Payroll (STP)?
Single Touch Payroll is the ATO’s next step in streamlining your payroll reporting. It is a new reporting obligation that changes the way you report your employees’ payroll information to the ATO.
From 1 July 2018, employers with 20 or more employees (as of 1 April 2018) will be required to report payments such as salaries and wages, pay as you go (PAYG) withholding and super information to the ATO when paying their employees. This means the ATO will have real-time access to Australian payroll data linking PAYG to Business Activity Statements (BAS) and Superannuation Ordinary Times Earnings Calculations.
When will STP come into effect?
Will Xero be STP enabled by 1 July 2018?
Yes. Xero are working closely with the ATO to roll out STP in Xero Payroll by 1 July 2018. It will make it simple to set up and process pay runs in compliance with the new requirements.
How STP looks in Xero
Xero will have a simple set-up process for Single Touch Payroll. During the STP setup, Xero will display your software service ID (SSID). You’ll need to provide it to the ATO in one of two ways. Either:
- call the ATO and notify them of the SSID, or
- login to ATO Access Manager (using AUSkey) and nominate a software service provider Once you are setup, the option to report a payment to the ATO will be presented for each pay run and your payroll information will be filed with the tax office.
Also, due to the filing requirements for STP, you’ll only be able to revert the latest posted pay run for each pay calendar after you’ve opted in.
What do you need to do now?
Please refer to the checklist to ensure you are ready for Single Touch Payroll by 1 July 2018.
Want to know more?