Single Touch Payroll (STP) Ready. Now What?

Updated February 14th 2020

So you’re STP ready – now what? Follow these 4 essential steps.

Follow these steps from the Australian Taxation Office (ATO) to ensure you submit your STP reports successfully. Alternatively, contact your CIB manager if you have any concerns.

1. Determine who will authorise and send your STP report each pay cycle

If you are the business owner or public officer you are already authorised to send STP reports.
If someone else in your business will be authorising and sending the reports (such as payroll manager), you will need to grant them the authority to do so. You may also need to record this authorisation in your payroll software. Instructions on how to do this should be part of your set-up with your STP software provider.

If a third party (such as a payroll service provider, or a registered tax or BAS agent) will be reporting on your behalf, you will need to authorise them to a role level relationship with the ATO. To do this, simply log onto your business portal to add in your registered party agent or call up the ATO and ask them to link the agent for you. Your registered agent will also need to record their Registered Agent Number (RAN) in STP pay event payload.

2. Ask your payroll software provider how your software can connect to the ATO

If you are using a cloud-based software to keep track of your payroll, you may be able to connect directly to the ATO using your AUSkey login (this is more common for larger employers).

Alternatively, your software can also connect securely to the ATO using a Software Service ID (SSID) which is usually generated by your software during the set-up process

To connect via this method, contact the ATO and provide them with your SSID. STP reports cannot be received by the ATO without the correct SSID.

Another option is connecting your STP software via a Sending Service Provider (SSP). If you are connected through SSP, then you do not need to contact the ATO to set up a connection as your SSP will do this for you.

3. Decide who the ATO should contact if they have any questions about STP matters

You, or your nominated person, needs be added as a contact for pay-as-you-go withholding. This contact is listed in the STP pay events and is usually someone who understands your payroll amounts and how it is calculated.

4. Start STP reporting and check your data was sent correctly

You should check your STP software for a successful status indicating the report was sent to the ATO. This indicates the file has been received by the ATO. Ask your provider how they will be alerting you of any errors from the ATO and how or where in the STP software you can access and action those errors. Speak to your payroll solution provider if you need further assistance.

We understand preparing for your first report can be daunting. With our help, you can be confident your first report will be headache free. Contact your CIB manager for assistance and guiding in navigating STP reporting requirements.