Answers to Common Questions on Single Touch Payroll and Reporting
We have had a lot of enquiries following the changes to payroll and reporting requirements, not only from clients but from all over, so we thought we would get something together to help answer some of the more common questions. Of course, we invite you to give us a call at any time if there is something you are not sure about, we can help, it’s what we do!
Do the Single Touch Payroll changes affect me as an employer?
The short answer is, yes.
The longer answer is yes for different size employers, here is a very quick summary for you:
- Employers with 20 or more employees – STP started from 1 July 2018 for employers with 20 or more employees, you should already be reporting through Single Touch Payroll. If you’re not sure if STP applied to you during the 2018–19 financial year, you can do a headcount (not a full-time equivalent) to check if you had 20 or more employees at 1 April 2018.
- Employers with 5-19 employees – It is now mandatory for all employers in Australia to adopt a compliant payroll solution from 1 July 2019. You can start filing Single Touch Payroll before 1 July and STP is available on all Xero subscription plans.
- Employers with 1-4 employees – If you have four or fewer employees and don’t currently use payroll software you can now start reporting Single Touch Payroll through a low-cost solution starting from $7.50 per month.
How do I report payroll to the ATO?
Your software can connect directly to the ATO using a device AUSkey (more common for larger employers).
Alternatively, your software may connect to the ATO using a software service ID (SSID) which is usually displayed by your software during the STP setup.
Another option is your software may connect to the ATO through a sending service provider (SSP). If this is how your software connects to the ATO, you do not need to contact the ATO to set up a connection. Your SSP will do this for you.
Advivo has put together a low cost, once-off solution to help you get set up – we will look at the software you are using and get you set up and ready in no time – you can even make an appointment right here and now!
Do employers still need to provide employees with PAYG summaries or “Group Certificates”?
No, if have finalised your EOFY STP reporting with the ATO. You are exempt from providing payment summaries to your employees (these are called income statements in myGov).
Yes, if you have not finalised your EOFY STP reporting to the ATO. You still need to give payment summaries to your employees for any payments not reported through STP and you will also need to provide the ATO with a payment summary annual report for these payment summaries.
If you are not sure if you have completed the final step for EOFY payroll reporting, just give us a call, we can talk you through the steps, it’s as easy as 1,2,3.
What if I need to amend my EOFY STP reporting?
If you identify that you need to correct any information after finalisation, you should make an amendment as soon as possible. You can do this by submitting an update event in your STP-enabled solution. Of course, if you are not sure, just give us a call and we can talk you through the steps.
Now we could go on as the questions continue to keep coming with any significant change like this to legislation, there have been accommodations offered for employers that do not believe they will be ready.
Advivo, with our talented business accountants and advisors, has been on the front foot with the changes and we can help. We encourage people to contact us, no question is too big or small, and we will more than likely have the answer.
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