If you’re about to start your STP compliance journey but aren’t too sure how to go about it, don’t worry. We’ve put together this guide on what you need to get STP ready.
Technology
Update your payroll software to the latest version
You need to make sure that your payroll software is STP enabled. Work with your payroll software provider to update your software to the latest version.
Of course, if you develop your own payroll software, make sure that your software can export the data that the ATO requires.
STP file format and ATO connection
If your payroll software is not connected to the ATO, you can work with a sending service provider (SSP) like MessageXchange, to transmit your STP files on your behalf. In this case:
- Check if your software can generate payroll files in the ATO-required XML format. If not, check with the SSP if they can map (‘translate’) your payroll file to the format required by the ATO
- Find out if you need any configurations or testing to start your STP process
- Find out how you will receive the ATO’s responses.
Internal process
Review your payroll process to ensure:
- You are paying your employees correctly
- You are handling employees’ entitlements correctly
- You employees’ details (address, date of birth, name) are up to date and in the correct format.
Under STP, you are not obliged to provide payment summaries (previously group certificates) to your employees, but you can still choose to do so. Decide if you want to continue to issue payment summaries.
Employees
Inform your employees that you are no longer obliged to provide payment summaries. The ATO will make the information that was available on payment summaries visible in their myGov account. They’ll see this under ‘income statement’.
Advise your employees to set up a myGov account, if they haven’t already. With a myGov account, they will be able to see their income statement, year-to-date tax and super information online. The ATO have published information on how to setup MyGov accounts.
Still have questions? Download our comprehensive guide to achieving Single Touch Payroll (STP) compliance.