Xero: Single Touch Payroll: do you need to be ready?
Single Touch Payroll (STP) is changing the way employers report to the Australian Taxation Office (ATO). STP becomes mandatory from 1 July 2018 for employers with 20 or more employees, and is optional for all other employers.
We’re working closely with the ATO to roll out STP in Xero Payroll over the coming months. It 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 now to know whether you’re required to comply with Single Touch Payroll from 1 July 2018.
If you’re running your own payroll
- Review and update your organisation details such as the ABN address if required.
- Review and update all your employee details such as dates of birth, tax file numbers and residential addresses.
How STP looks in Xero
Xero will have a simple set-up process for Single Touch Payroll. During the STP setup, Xero will display your software service ID (SSID).You’ll need to provide it to the ATO in one of two ways. Either:
- call the ATO and notify them of the SSID, or
- login to ATO Access Manager (using AUSkey) and nominate a software service provider
Once you’re setup, the option to report a payment to the ATO will be presented for each pay run and your payroll information will be filed with the tax office.
Also, due to the filing requirements for STP, you’ll only be able to revert the latest posted pay run for each pay calendar after you’ve opted in.
Want to know more?
In the coming weeks, we’ll keep you updated to make sure you have the information you need and are aware of any key dates relating to the rollout. We will also be contacting clients who are near or over the 20 employee threshold in the coming weeks to make sure you are ready for 1 July .
Article sourced from the Xero Blog.