Single Touch Payroll

The Australian Taxation Office has mandated that business's report their payroll information on a pay period basis.

If you have 20 or more employees you will need to report through Single Touch Payroll from 1 July 2018. The first year will be a transition period and penalties may not apply.

If you have less than 19 employees, you should start STP reporting prior to 30th September 2019.

If you have less than 5 employees, the ATO has provided extra options to allow an easier transition to STP Reporting. See below for further details.

The options available for payroll software providers, such a Wilmat, are to lodge payroll data directly with the ATO or lodge payroll data via a third party provider that has been approved by the ATO to receive and lodge the payroll data via a csv file upload.

The mechanism the ATO has adopted for reporting payroll information is incredibly onerous and complicated and would involve months of development effort and considerable expense. Because of the onerous nature of the ATO lodgment process Wilmat has decided to make use of a third party provider, Single Touch Pty Ltd, to lodge payroll data. The service provided by Single Touch Pty Ltd involves a small ongoing cost. Wilmat will at some future point develop the process to lodge STP data directly with the ATO.

Wilmat has updated the Payroll by Wilmat software to enable a business to lodge its payroll data on a pay period basis via the third party provider Single Touch Pty Ltd. The following steps summarize what you need to do to be able to lodge your payroll data with the ATO.

Step 1
Download and install the latest update to Payroll by Wilmat. You can do this from the payroll software by selecting from the payroll menu, Files / Update Payroll

Step 2
Log onto the Single Touch Pty Ltd website and add your business as an entity. Select Sign up now to create an account/entity.

Step 3
Log into your MyGov portal and authorise Single Touch as your STP provider. Select Access Manager from your MyGov menu and then select My hosted SBR software services. Select Single Touch Pty Ltd from the list of providers.

Once you have completed the set up of STP you will be able to upload your payroll data to the ATO as follows:

Ensure that employee details are complete. Select the Single Touch Payroll Check report from the Reporting Menu, which will provide a list of employees that have incomplete or invalid data. Data errors will need to be corrected before the system can create a STP file that is able to be successfully lodged with Single Touch Pty Ltd and transferred to the ATO.

From the Payroll by Wilmat menu, select Export / Single Touch Payroll. This will create a .csv file containing your payroll data for the selected payroll period. If the Payroll System is able to create a valid STP file you will be directed to the Single Touch Pty Ltd website. Log onto the Single Touch Pty Ltd website and select Upload File. Shortly after your file has been uploaded you will receive email notification from Single Touch Pty Ltd that your file has been lodged with the ATO. You will receive a further acknowledgment once the ATO has successfully processed your file. If the file contains errors you will receive an error report from Single Touch Pty Ltd and/or the ATO.

As mentioned above, the ATO has provided additional options for micro employers, ie employers with less than 5 employees. One option available will allow Wilmat, as a Registered BAS Agent, to lodge your STP information quarterly on your behalf. At the moment the ATO has made this option available until 30th June 2021.

Please contact Wilmat if you are a micro employer and would like Wilmat to lodge your STP data to the ATO on your behalf. It is an ATO requirement that a signed agreement exists between the employer and Wilmat authorising Wilmat to lodge STP data on behalf of the employer.

Further Information

ATO Single Touch Payroll