Brought to you by

Single Touch Payroll is coming, and Xero will be ready

Posted 2 weeks ago in Advisors by Sukesh Elati
Posted by Sukesh Elati

Australia’s 1 July deadline to adopt Single Touch Payroll (STP) is fast approaching. But if you or your clients are on Xero, there’s some good news: You may have extra time. Thanks to the ATO, Xero subscribers will have a deferral of as much as six months to ensure a smooth rollout of STP.

Xero will be ready for STP on 1 July. We’ll be rolling out STP progressively to users from 1 July rather than switch everyone over at once. This will ensure the transition is smooth for all users.

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: How can employers document the ATO deferral, if needed?

A: Xero customers can use the ATO reference number 49410109.

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.

Q: I have clients with fewer than 20 employees. Can I still move them STP?

A: Yes, once Xero has enabled STP for that client.

2 comments

R
May 11, 2018 at 11.30 am

I have a pay run on 1 July 2018 and have over 20 employees – so will be expected to report to the ATO on 1 July 2018. Will I be able to do this on that day? Trying to play catch up with reporting to the ATO is not an ideal situation. Are you advising the ATO of the deferral number (quoted in your blog) for all Xero users – so there are no consequences for us if we are not able to report?

Demian Mclean Xero
May 17, 2018 at 5.57 pm

Hi, R. Some employers on Xero will begin using STP on 1 July, particularly larger employers. When it’s time for you 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 STP 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. The ATO deferral number we listed above applies to all Xero users.

There’s no catch-up with reporting to the ATO when you begin using STP. Each STP filing includes all year-to-date payroll information. Let me know if you have further questions!

Leave a reply

Your email address will not be published. Required fields are marked *