A good clear explanation about STP
STP works by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll.
When you start reporting:
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- you will run your payroll, pay your employees as normal, and give them a payslip
- your STP-enabled payroll software (Xero) will send the ATO a report which includes information about salaries and wages, pay as you go (PAYG) withholding and super
- You will be reporting super liability information through STP for the first time. Super funds will also be reporting to the ATO. This is an important step toward making sure employees are paid their correct entitlements.
ATO systems will match the STP information to our employer and employee records.
Your employees will be able to see their year-to-date tax and super information in ATO online services – myGov. Their data is updated every time you report (each pay day for most employers). Without STP reporting, employee data is only reported at the end of the financial year.
At the end of the financial year, you’ll need to finalise your STP data. This is a declaration to the Commissioner to state you have completed your reporting for the financial year.
You will no longer have to give your employees a payment summary for the information you’ve reported and finalised through STP. Once you finalise your data, your employees or their registered agent will be able to lodge their income tax return using the STP information available in ATO online.
The ATO have a whole site dedicated to STP. Click here to access.
Xero is ready for STP
Click here for lots of information about STP and Xero
Xero Set up
Here is a link to the Xero support page about setting up STP in your Xero account
To set up STP in Xero you will first need to contact the ATO and give them your organisation ABN and your software provider code (SSID)
To contact the ATO you need to be a registered contact with the ATO for your organisation. Click here for more information about this
Xero STP Processing
Once you are set up for STP in Xero, after every payrun simply click File and the information is submitted to the ATO
Click here for detailed information about filing STP from Xero payroll
Here is some more information about STP from Xero:
https://www.xero.com/blog/2019/02/stp-now-required-for-all-australian-small-businesses/
https://www.xero.com/blog/2019/02/your-questions-on-single-touch-payroll-answered/
Please contact us if you would like to discuss the financial management of your church or NFP at [email protected] or 1300 138 627
© Benkorp Management Services Pty Ltd 2019