From 1 July 2019, all Australian businesses are required to report payroll information to the Australian Taxation Office (ATO) through Single Touch Payroll (STP). It is imperative that you set this in place now to ensure you meet this deadline.  Compass has undertaken the groundwork to ensure this process is as simple as possible for you.

STP requires employers to transfer payroll data in an approved digital format to the ATO each time their employees are paid. If you use Xero software for your payroll, Compass, as your Xero specialist, has detailed below how these reporting functions will work for you. Your payroll reporting system must be STP compliance, so if you are not using Xero, call us to discuss your options on 1300 554 948.

STP has already been mandatory for all businesses with 20 or more employees since 1 July 2018, and has now been confirmed as mandatory for businesses with less than 20 employees from 1 July 2019.

It is imperative this issue is addressed promptly to meet requirements and avoid penalties.

Once-off Registration Process

To get started with STP, there is a once-off registration process to link your Xero file to the ATO.  Follow these steps:

In your Xero file, click on the “PAYROLL” menu, and select “PAY EMPLOYEES”.  A message box should appear stating “Changes to the way you report payroll information to the ATO”, click “GET STARTED”.  If this message box is not appearing, you should have a link towards the top right of your page titled “Setup Single Touch Payroll”, click this and it will take you to the message box noted above, and then click “GET STARTED.  On the “Opt-in to Single Touch Payroll” screen, click “OPT IN”.

Review your organisation details to ensure they are correct.  If necessary, click “UPDATE ORGANISATION DETAILS” and Xero will redirect you to the “Organisation Details” page for you to correct as needed.  Once saved, you will need to restart the process as per the above paragraph.  If your details are in order, click “CONTINUE”.

An authorised person (business owner/director) will now need to telephone the ATO on 1300 852 232 for them to link your Xero file to the ATO.  We suggest the business owner/director makes this call.  When speaking to the ATO operator, make it clear that you are calling to link your Xero file to the ATO for STP.

The ATO will require the caller to provide proof of identity which may include personal details.  They will also require proof of ownership of your Xero file which can be located in Xero on the “Connect Xero file to the ATO” page as follows:
– your Australian Business Number (ABN)
– your Software Provider
– Software ID (SSID)

Wait until the ATO operator confirms you are registered for STP. Once confirmed, select the checkbox in Xero “I HAVE CONTACTED THE ATO TO CONNECT MY XERO ACCOUNT”. Then click “REGISTER”. Xero will redirect you back to the “Pay Employees” page.

That’s it! You are now ready to use STP.

Compass Accounting

Start Using STP

Now that you’ve followed the above steps to register, you can start using STP.

In Xero, on the “Pay Employees” page, you will see the “Pay Run History” table. This will now include an additional “STP Filing” column at the right of the page, and a green “FILE” button at the base of the page.

For a test run, you can submit your last completed and posted payroll run by clicking the green “FILE” button at the base of the page.

An authority to file page will appear. Review and confirm the details by checking the box as required, and clicking “SUBMIT TO THE ATO”. The submission status will change to “Pending” and then to “Filed” once completed.

You have now submitted your first STP file to the ATO.  It is as simple as that.

For all future completed and posted payroll runs: select the run, click the green “FILE” button at the base of the page, complete the authority as required, and submit to the ATO.

Xero Training Video

 

ATO Resources

 

 

 

Get in Touch

We have already assisted larger employers meet their STP obligations from the 1 July 2018 deadline, and we can help you through this process as well.  If you need further support, please contact our office on 1300 554 948 to discuss appointment options and costs to ensure you are operational before 1 July 2019.

Get in Touch

To discuss your specific requirements please contact Compass on 1300 554 948, get in touch using the form below – we’ll be delighted to help!