Single Touch Payroll (STP) is a government initiative that requires businesses to report pay details to the ATO digitally.
Businesses must use STP-enabled software.
A payroll report goes to the ATO when you pay staff.
End-of-year annual reporting is now simpler.
Use Xero to start reporting to the ATO each pay run. During the setup process, you:
Generate and send reports showing employee PAYG withholdings and superannuation liabilities.
Claim fortnightly JobKeeper payments for eligible employees as you report pay runs using Xero’s STP-enabled payroll software.
Registered tax and BAS agents need to use Xero or other Single Touch Payroll software for reporting if they process payroll or calculate pay as you go (PAYG) withholding and super for clients.See how to set up Single Touch payroll in Xero
If you employ 1–4 people, you may have until 30 June 2021 to set up for STP. A registered agent must have already applied to report quarterly for you using software like Xero. A few types of business can lodge quarterly themselves or are exempt.See more about quarterly reporting at the ATO website
After each pay run, once pay details from Xero have been reported to the ATO, employees can see up-to-date tax and super information in their ATO online services account. An income statement is also available there at the end of the financial year.See more about STP for employees at the ATO website