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Single Touch Payroll: do you need to be ready?

Posted 4 weeks ago in Product by Sukesh Elati
Posted by Sukesh Elati

Single Touch Payroll (STP) is changing the way employers report to the Australian Taxation Office (ATO). STP becomes mandatory from 1 July 2018 for employers with 20 or more employees, and is optional for all other employers.

We’re working closely with the ATO to roll out STP in Xero Payroll over the coming months. It will make it simple to set up and process pay runs in compliance with the new requirements.

To get ready, just confirm your headcount on 1 April 2018 to know whether you’re required to comply with Single Touch Payroll from 1 July 2018.   

If you’re running your own payroll

  • Review and update your organisation details such as the ABN address if required.
  • Review and update all your employee details such as dates of birth, tax file numbers and residential addresses.

If you’re managing payroll for your clients

  • Review and update your practice details such as your ABN, addresses, and registered agent numbers if required.
  • Review and update your client’s organisation and employee details.
  • Review your internal processes to make sure you have your clients’ permission to lodge their payroll information with the ATO. You may need to amend your standard engagement letter and your internal procedures manual.

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: 

Once you’re 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.

Want to know more?

Check out the Single Touch Payroll video from ATO or visit ato.gov.au/SingleTouchPayroll.

In the coming weeks, we’ll keep you updated to make sure you have the information you need and are aware of any key dates relating to the rollout.

 

7 comments

Margie
April 4, 2018 at 7.39 pm

Where clients don’t have an Auskey to report the SSID to the ATO, can you please advise the ATO contact number they need to call to advise the SSID?

Tracy Bell
April 5, 2018 at 1.26 pm

What is Xero’s Software ID number for registration with ATO?

Sukesh Elati
April 6, 2018 at 3.57 pm

@Monique – No.
@Margie – It will be provided as a part of the set up for STP when STP is made available.
@Tracy – It It will be provided as a part of the set up for STP when STP is made available.

Rose Mc Gill
April 12, 2018 at 12.57 pm

Is there an updates as to the date it will be made available?

Terry-Anne McPhail
April 16, 2018 at 3.01 pm

Will employers issue 2018 payment summaries as per previous years, or will they appear on employees My Gov accounts?

Lisa Waddingham
April 16, 2018 at 4.10 pm

Can you provide more specific information to users preparing for the STP?

The above information says “Review and update all your employee details such as dates of birth, tax file numbers and residential addresses.”

We are reporting superannuation details also – is there a list of fields Xero can provide that are mandatory within the employee’s details?

I am trying to avoid updating/reviewing files more than once, and would hate to wait until the first lodgement to receive errors and have to update more fields to comply.

Being the end of financial year doesn’t exactly help with short time frames if errors are found on 1 July 2018.

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