Single Touch Payroll

April 13, 2018

Single Touch Payroll

Single Touch Payroll (STP) comes into effect from 1 July 2018 for employers with 20 or more employees as at 1 July 2018. Are you ready?

Confirm your headcount as at 1 April 2018 to find out if you are required to comply.

Headcount includes Doesn't include
Full time employees Employees who cease work prior to 1 April
Part-time employees Independent contractors

Casual employees who worked any time
during March 2018

Casual employees who didn't work in March
Employees based overseas Staff provided by 3rd party
Employees absent or on leave including
unpaid and maternity.
*Company directors, office holders, religious practitioners.

*Whilst not included in headcount you will still need to report their payment information when you start reporting through STP.

Xero are working closely with the ATO to roll out STP in Xero Payroll. Xero will has a simple set up process for STP. 

During the setup, Xero will display your software service ID which you will need to provide to the ATO.  You can do this one of two ways,

  • Call the ATO and notify them, or
  • Login to ATO Access Manager (using Auskey) and nominate a software service provider.

Once setup the option to report to the ATO will be available for each pay run and your payroll information will be filed with the ATO.

It should be noted that due to the filing requirements for STP, once you have started using STP you will only be able to revert the latest posted pay run for each pay calendar.  Any corrections to previous pays will have to be done via an unscheduled pay run.


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