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 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.
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 started from 1 July 2018 for employers with 20 or more employees, you should already be reporting through Single Touch Payroll. If you're not sure if STP applied to you during the 2018–19 financial year, you can do a headcount (not a full time equivalent) to check if you had 20 or more employees.
It is now mandatory for all employers in Australia to adopt a compliant payroll solution from 1 July 2019. You can start filing Single Touch Payroll before 1 July and STP is available on all Xero subscription plans.
If you have four or less employees and don't currently use payroll software you can now start reporting Single Touch Payroll through Xero's Payroll Only plan at a low cost of $10/month.
When an organisation is opted in for STP, they're no longer able to produce payment summaries. Instead, employees can access these through their MyGov accounts.
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.
ETP payment summaries are treated the same as the normal payment summaries. Once opted in to STP, these can no longer be produced, and employees will instead get this infomation through MyGov.
You simply need to make the adjustment in an unscheduled pay run > file this pay run using STP > complete the finalisation process for that employee again. Full steps are covered under 'Fix an employee's finalised STP data' on Xero Central.