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.
Xero is 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 1 April 2018 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:
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.
Ready to chat?
Whether it be a quick phone call, meet for coffee, or want to bash it all out in an email – Contact us today! No charge, no obligation.
New Rules for 2018. From 1 July 2017, most people can make a personal superannuation contribution for which they claim a tax deduction. This could provide an immediate positive return on their investment. You will be able to contribute any amount,...
Create a Cracker Year for your Business – Forecast and Plan for Success Creating a Forecast or a Budget is the most crucial thing you should be doing as a business owner over the next month. Running your business without a forecast is like setting off on...
In an effort to showcase our amazing team members and allow you to get to know who we are, we are running a “Team Advocate of the month” to show you our bunch of people and celebrate their skills. So here is our May Advocate…. Are you a morning person, or a night owl?...