Australia’s 1 July deadline to adopt Single Touch Payroll (STP) is fast approaching. Xero will roll out STP progressively to users starting 1 July rather than switch everyone over at once. This will minimise any chance of disruption to your business. Thanks to the ATO, Xero subscribers have a deferral of as much as six months to ensure a smooth rollout of STP.
When it’s time for a payroll administrator to opt-in to STP, a banner will appear on the Xero pay-run screen. This is a similar to how Xero rolled out its Superannuation feature. All you’ll need to do is click on the banner and follow a few more steps.
Until then, you can process payroll as normal and remain in full compliance with the ATO. It’s that simple. We expect to have all Xero users switched to STP well before the end of December.
We’re excited about the addition of STP to Xero Payroll, and we think you will be too. Here’s a sneak peek at what’s coming:
We’ll have details on our STP implementation, educational webinars, and more in the coming weeks. In the meantime, rest easy and be assured that the move to STP will be a simple one on Xero.
Here are some FAQs for further information. And see our Xero STP page too.
Q: Do I need to contact the ATO about the deferral?
A: 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.
Q: Do I need to obtain client authorisation before I file every pay run?
A: Yes. However, industry bodies including the Institute of Certified Bookkeepers are in discussions with the ATO on whether this process can be streamlined.
Q: Who has to make the switch to STP?
A: All businesses with 20 or more employees, as of 1 April 2018, must use STP by 1 July 2018. But as noted, many Xero users will implement STP in the months that follow, with no penalty. We’ll enable all Xero Payroll subscribers for STP well before 31 December 2018.
Q: If I begin using STP after 1 July, do I have to play catch-up in reporting to the ATO?
A: No. Each STP filing includes all year-to-date payroll information. This feature, along with the ATO deferral, means there won’t be any complications when you begin using STP.