From 1 July 2019, Single Touch Payroll (STP) will be expected to be a part of the pay-as-you-go reporting cycle for small business. That’s right, no more end of year ATO reporting and statements for wages, deductions and super information.
How does STP work?
For businesses with digital payroll software, like Xero, it can be done in seconds.
Xero’s STP solution is simple and has been endorsed for use by the ATO. It is readily available to businesses with 20 or more employees, as part of a broader legislative move toward the digitisation of business.
For those without a digital solution, businesses will need to comply with the new regime through business activity statement filings, submitted quarterly to the ATO.
Who has to make the switch to STP?
All businesses with 20 or more employees, as of 1 April 2018 will be required to be complying with STP by 1 July, 2019.
What if you have fewer than 20 employees?
You’re not yet required to use STP so there’s nothing you need to do. In Xero, when STP does become available for your business, you will be notified within the software, and will be given instructions on how to activate
Will STP change your current payroll workflow in Xero?
STP in Xero is simple. Once set up, it adds just two clicks to your workflow.
How to get STP sorted with Xero
If you have Payroll Amin access, you can set up STP and file information.
1. Head to your Pay Runs screen under Payroll in Xero
2. Check your details, then securely connect to ATO
3. Complete your pay run as normal, then click File
Want to take a digital approach to your accounting and payroll?
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