Is Your Software Ready?
It should be!
Most software has established STP reporting functions or alternatively provide a compliant file that can be sent to the ATO through a commercial "Sending Service Provider"
Over 40000 employers have submitted STP reports to the ATO.
Some software had an extension arranged with the ATO on behalf of their clients which states that STP does not have to commence in some cases to as late as May 2019. The software for most businesses: MYOB, Reckon, Intuit QBO, Xero have STP reporting enabled and available.
Connecting Software to the ATO
Each payroll software must be authorised to submit STP reports to the ATO. There are 3 methods of achieving this "authorisation:
1/ The employer must obtain a SID (Software Identifier number) from their software which they then provide to the ATO in Access Manager. Each of the software is walking you through the process.
2/ Sending Service Provider obtains the file from your software but must also be "known" by the ATO as the organisation permitted to lodge your STP reports. Similar connection to #1
3/ Direct: Where the employer has their Auskey and the software provides a direct connection to the ATO. The employers Auskey authorises the technical lodgement
Refer to the ICB information on Connecting your software.
Make sure you attach the employers SID to the employerss software ICB Explanation
A note about small employers
You do not have to do STP reporting YET! Maybe by 1 July 2019 if the legislation is passed. But why wouldnt you. Most of your software is ready and it is easy.
The ATO (and ICB is involved) are conducting co-design discussions to consider how to apply STP to the smaller employers. There is significant concern about the cost of software and the disconnected or non-computerised employers.
Note that there is at least one "FREE" software for employers with only 1or2 employees (see below) and also GovReports (ICB Strategic Partner) is providing a BAS Agent lodgement portal option for Bookkeepers to assist their disconnected employers.
The approach to small employers - ICB Consultation
The ATO explanation on small employers - without the required legislation
ATO approach software for a low cost solution for small employers - ATO information
Further consultations with the ATO indicate they WILL allow the registered BAS Agent to lodge STP reports for the micro employers (1-4 employees, or disconnected) in conjunction with their BAS obligations ie once per month or once per quarter.
End of Year
2018 - it seems most did still need to issue payment summaries to employees and lodge a PSAR/empdupe file to the ATO.
2019 - we are advised that most software will have the "Finalisation" process in their software in time for employers before 30 June 2019 and therefore this replaces the payment summaries. More information to follow.
Status by Product
MYOB announces a low cost solution
MYOB STP Connect Hub - all things about STP from MYOB
“It’ll simplify your ATO reporting because you’ll be able to do it directly from your payroll software at the same time as you pay your employees.
This means you’ll be able to meet your ATO reporting obligations at the same time you pay your employees, instead of running a separate process.”
You can implement Single Touch Payroll by 1 July 2018 by upgrading to the new AccountRight (an AccountRight subscription entitles you to an upgrade).
Our latest AccountRight version has some STP readiness checks to help you prepare. We recommend attending one of our Single Touch Payroll training courses.
Refer to the ICB Webinar - How to do STP in MYOB
In a statement, Reckon said its new GovConnect STP application connects all its existing products to the Australian Taxation Office’s STP service, helping employers manage payroll reporting regardless of the product they use.
Features include enabling users to lodge directly with the ATO, review past and current submissions, and have a single pane view of the exact data that goes to the ATO."
We’re supporting STP across our online and desktop range
- Reckon One
- Accounts Hosted
- Reckon Accounts 2018 version onwards
- Payroll Premier 2018/19 version onwards
We’ve developed a new application called GovConnect STP that will make meeting your STP requirements quick and easy. GovConnect STP acts a gateway to the ATO enabling you to view and lodge your STP reporting no matter what Reckon product you use.
✓ Lodge directly to the ATO
✓ Review before you submit
✓ No extra cost
Refer to the ICB Webinar - How to do STP in Reckon
Xero announces a low cost solution for small employers
When it’s time for a payroll administrator to opt-in to STP, a banner will appear on the Xero pay-run screen. This is a similar to how Xero rolled out its Superannuation feature. All you’ll need to do is click on the banner and follow a few more steps.
Until then, you can process payroll as normal and remain in full compliance with the ATO. It’s that simple. We expect to have all Xero users switched to STP well before the end of December.
The Xero platform will invite you to use STP when it’s time to make the switch. "When it’s time for a payroll administrator to opt-in to STP, a banner will appear on the Xero pay-run screen"
Until then, you can process payroll as normal, without incurring any penalty. It’s that simple.
Refer to the ICB Webinar - How to do STP in Xero
Intuit Advisor STP Tech Overiew Flyer
GovReports has a lodging facility for Small Employers and Agents
GovReports STP compliance options for each pay cycle:
- Data entry the employees and their pay details directly online to create and lodge payrun to ATO. Rollover option is available for repeat on each pay cycle.
- Upload Payrun in CSV file format or
- Payrun upload in XML and or other file formats will be added over time
A bookkeepers solution to assist you work with your businesses if their payroll will not lodge.
e-PayDay https://www.e-payday.com.au/ have also been intensely involved in the STP co-design discussions. They report they have been lodging STP reports since February. They also report that they have the end of year finalisation process for STP enabled for 30 June 2018.
The first two (2) employees are 100% free. You can use e-PayDay FREEPAY® and pay nothing
Cloud Payroll https://cloudpayroll.com.au/articles/single-touch-payroll/ Advise compliance with STP and also good options for small business
FastTrack fastrack.com.au Advise a deferral is only applicable for FastTrack customers who are in the processing of transitioning to the FastTrack360 platform.
SAP www.sap.com Advise deferrals for a number of their products until May 2019 Check under the "Australia" information
Sage sage.com.au Report they have achieved compliance and whitelisitng for STP with the ATO as of 30 April 2018
SapphireOne (not a product we are familiar with) reports compliance with STP now
Products that use a Sending Service Provider
Some Payroll products are using a third party "Sending Service Provider" to convert and onsend the Payroll information to the ATO.
ozedi.com.au On Thursday 10th May 2018 Ozedi went into production with STP as a Sending Service Provider. In our first hour of operation Ozedi submitted data and retrieved responses for two payroll providers in Product Verification Testing.
messageexchange.com Send STP messages with employee salary, PAYG, superannuation information and more to the ATO from your existing software. If your software is unable to produce an STP XML file, MessageXchange can map your native file to the STP XML format for you.
ICB Newsletters - subscribe here
ICB Business Support Program - Connect and be supported by Certified Bookkeepers
ICB Single Touch Payroll resources