What is Single Touch Payroll?
Single Touch Payroll is a new way of reporting payroll information to the Australian Tax Office. Businesses used to report this information to the ATO once a year.
Now, they need to send a report after each pay day. And those reports must be submitted using a solution that is Single Touch Payroll compliant, such as payroll or accounting software.
With Single Touch Payroll, the payment summary annual report and the payment summary will go away.
When do I need to be Single Touch Payroll compliant?
It's now mandatory for all employers in Australia to adopt a Single Touch Payroll compliant software solution.
How do I become Single Touch Payroll Compliant?
Xero is Single Touch Payroll ready so don’t worry, we’ve got it sorted for you. We work out what payroll information needs to be filed, and send it securely through to the ATO for you. Here's how you can get started.
Set up your payroll
Before you can file your payroll to the ATO, you'll first need to set up your payroll system.
Enable Single Touch Payroll
To be compliant with the ATO's requirements, you'll need to connect your Xero account to the ATO's portal.
We've got plans to suit your Single Touch Payroll needs
Frequently asked questions
Single Touch Payroll (STP) reporting is currently available through payroll, accounting and business management software. Xero is STP ready and available for anyone who wants to report salaries and wages, PAYG withholding and superannuation directly to the ATO with confidence and security.
Single Touch Payroll works by sending tax and superannuation information from your payroll or accounting software to the ATO as you run your payroll. The way STP information is sent will depend on the software you use. With Xero Payroll connecting to the ATO is done just a few simple clicks. Employees will be able to see their YTD tax and superannuation information through myGov. See the ATO website for further information.
Single Touch Payroll applies to all small businesses in Australia. Employers with 20 or more employees should already be reporting through Single Touch Payroll. Employers with 1- 19 need to start reporting from of July 1 2019. Xero is Single Touch Payroll ready so you can start reporting at any time.
You should only opt in once you want to start filing using STP. Once you've opted in, you won't be able to opt out again.
With payroll and accounting software solutions we offer STP compliant payroll products starting from $10 per month. Our payroll solutions are simple, easy to use and let you organise all your business needs in one handy place.
More FAQs here