From 1 July 2018, all employers with more than 20 employees as at 1 April 2018 are required to use Single Touch Payroll.

Not all software providers are ready for this, or are staging their release so that their systems do not crash.

The ATO have granted deferral numbers to the following software providers to 31 December 2018:

Xero – 49 410 109

MYOB – 44 155 840

If you receive a letter from the ATO about your non-reporting then you can provide this number to them and they will show leniency.

For other software providers, please contact them to ask for their deferral number.

Xero Users

From 1 July 2018, Xero will start rolling out STP. We do not know what order Xero are releasing it in, so we are unable to tell you when STP will be available within your Xero file. Xero have informed us if you are required to be lodging, STP will be available by 31 December 2018.

When STP is available, you will notice it when you go in to prepare a pay run. There will be a button that says ‘Opt in to Single Touch Payroll’ Click ‘Opt In’ if a business owner or click ‘I am an agent’ if you are a BAS of tax agent. Review the organisation details and update as required. If you are a BAS/Tax agent, review agent details and manually enter in BAS/Tax Agent Number. Connect Xero to the ATO. If you have an AUSkey with access manager, you can connect through this program. If not, you will need to call the ATO with the number provided.

Once set up is done, you can process payroll as per usual. There will be an additional button at the end, that reports the data directly to the ATO. You must file the data to the ATO on the same day you process the payrun. If you make an error in a payrun, this can be corrected in the next payrun.

When STP is available within your Xero file, it will submit all data from 1 July 2018 to the date STP was activated. Going forward, it will submit your data in each pay run.

All payroll users are required to be set up for two-step authentication (2FA) by 30 September 2018 when it will become mandatory for all payroll users. If you require any assistance setting up 2FA please contact our office.

MYOB Users

If you are using MYOB, you need to install the latest download to be able to access STP.

Each person who processes payroll within your MYOB file needs to connect to the ATO individually (business owner, BAS agent, Tax Agent). All users are required to be set up for 2FA by 30 June 2018.

STP is currently ready to use in MYOB:

Click Payroll Tab
Check payroll details and update details if necessary
Once all payroll details are updated, you can connect to the ATO
You will need to call the ATO and they will finalise your STP set up

Once you are connected to the ATO, your payroll information will be automatically sent to the ATO in your next pay run.

Further help:

If you would like assistance with setting up STP or obtaining a deferral, please contact your Marsh & Partners advisor.

You can reach us on 07 3023 4800 or at mail@marshpartners.com.au.

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