Single Touch Payroll (STP) is changing the way employers report to the Australian Taxation Office (ATO). STP will be mandatory from 1 July 2018 only for employers with 20 or more employees and optional for all other employers.
We’re working closely with the ATO to roll out STP in Xero Payroll over the coming months. This will make it simple to set up and process pay runs in compliance with the new requirements.
To get ready, just Confirm your headcount on 1 April 2018 to know whether you’ll be required to comply with Single Touch Payroll from 1 July 2018.
If you are running your own Payroll
- Review and update your organisation details such as ABN address if required.
- Review and update all your employee details such as date of births, TFN numbers and employee addresses if required.
If you are managing payroll for your clients
- Review and update your practice details such as ABN, addresses, registered Agent numbers if required.
- Review and update your client’s organisation and employee details as required.
- Review your internal processes such as engagement letters to ensure you have the permissions to lodge your client’s payroll information to the Australian tax office.
How STP looks in Xero
- There’ll be a simple set up process for Single Touch Payroll. And you’ll need to provide the ATO your Software Service ID(SSID) in one of two ways:
- After you’ve done the required setup, the option to file will be presented per pay run and your payroll information will be filed with the Tax office as required.
Also, due to the filing requirements for STP, you’ll only be able to revert the latest posted pay run per calendar after you have opted in.
Want to know more?
In the coming weeks we will keep you updated on details to make sure you have the information you need and are aware of any key dates relating to our rollout.