How will Xero roll out STP to employers?
Xero is ready for Single Touch Payroll! Our STP solution is simple and beautiful and has been endorsed for use by the ATO. It is available to businesses with 20 or more employees, as part of a broader legislative move toward the digitisation of business.
What about the ATO’s 1 July deadline to begin using STP?
The ATO has granted Xero subscribers a deferral until as late as 31 December 2018. Should you wish to wait, you can continue processing payroll as normal until that date and remain fully ATO compliant without any penalty. The choice is yours – but rest assured, set up is simple.
Do I need to contact the ATO about the deferral?
No. The deferral is automatic for Xero Payroll users. There’s no need to apply for it nor contact the ATO to inform them about it. Xero users can use the ATO reference number 49410109 should anyone ask.
What if I have fewer than 20 employees?
If you have fewer than 20 employees, you’re not yet required to use STP so there’s nothing you need to do. When STP does become available for your business, we’ll let you know via a banner on the pay-run screen. At that point, you can start filing seamlessly with the ATO.
If I begin using STP anytime after 1 July, do I have to play catch-up in reporting to the ATO?
No. Each STP filing includes all year-to-date payroll information.This feature, along with the ATO deferral, will make for a smooth experience when you begin using STP.
Does STP cost extra in Xero?
No. STP compliance is part of the Xero product offering.
Will STP change my current payroll workflow in Xero?
STP in Xero is simple. Once set up, it adds just two clicks to your workflow.