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Intuit

How do I enable Single Touch Payroll?

Looking to enable Single Touch Payroll (STP) in preparation for the July 1st? The following steps will ensure you’re compliant and ready for these changes.   There are two parts to this process, firstly you’ll set up your ATO Supplier Settings, then you’ll need to setup Electronic Lodgement & STP (If you have previously setup your ATO Supplier Settings you can jump straight to this part).

Setting up ATO Supplier Settings

 

  1. Select Employees in the left hand menu
  2. Select the Payroll Settings tab
  3. Select ATO Settings

From here the steps differ slightly if you are setting up as the employer, as a registered Tax/BAS Agent or as an intermediary for multiple employing entities.

 

  • Lodging reports to the ATO as the employer: This option should be selected if no external TAX/BAS Agent will be lodging submissions to the ATO on the business's behalf and there is only one employing entity set up in the business.
  • Lodging reports to the ATO as a registered tax/BAS agent: This option should be selected if an external tax/BAS Agent will be lodging submissions to the ATO on behalf of the business, even if there is one or more employing entity set up in the business.
  • Lodging reports to the ATO as an intermediary for multiple employing entities: This option should be selected if the employer is lodging all ATO submissions and there is more than one employing entity set up in the business.

Copy Business Details

A handy feature in this screen is the ability to Copy from Business Settings. If you select this button it will populate the business fields from the information entered in the details screen. This function can be used regardless of what ATO setting is chosen.

 

Electronic Lodgement & STP

Enabling electronic lodgement will allow you to lodge employee tax file declarations and payments summaries online directly to the ATO. You must enable electronic lodgement before you can enable STP.

  1. Select Employees in the left hand menu
  2. Select the Payroll Settings tab
  3. Select ATO Settings
  4. Select the Electronic Lodgement & STP tab
  5. Contact the ATO on 1300 852 232 and provide them with your Software Provider and Software ID.

Note: It is essential this step is completed correctly otherwise your STP lodgement will fail.  If you encounter an error you use the following guide to assist in troubleshooting.

  1. Select Enable Electronic Lodgement
  2. Select Enable Single Touch Payroll then select Confirm

Note: Once you can confirm done, you will notice additional sections on this screen

Business Management Software (BMS) ID:

 

This is the unique ID that is used by the ATO to identify your business. You are only required to do something here if you were previously lodging STP events during the financial year using another payroll platform and want to migrate that platform's BMS ID to this platform.  Refer to the following article for updating your BMS ID.

 

Standing Authority Declaration:

 

This section only appears if the registered Tax/BAS Agent is set as the ATO lodgement type, in this scenario a declaration should be made by the employer or authorised employee at the time of providing the information to the Agent and the wording of the declaration should be in accordance with the requirements set out within the Taxpayer Declaration Guide. If this declaration has been completed, you can enter the details of this authority here. You are then able to use the Standing Authority when lodging pay events that include the same payroll information on a defined schedule. For example, an ongoing fortnightly pay run that includes the same payroll information each pay schedule where no ad-hoc payments are being made such as bonuses, commissions, back pays, etc. If the payroll information changes for a particular pay run, the Agent must request client authority prior to lodging the pay event.

To add a Standing Authority, select Add Standing Authority

  1. Enter the full name and email address of the person who has provided the standing authority,
  2. Enter the date the written authority was provided; and select Save

Note: It is not compulsory for a registered agent to have a Standing Authority with their client - that is, it is not essential for STP reporting. All this means is that before you lodge a pay event, you will need to request client authority from within the system. The person(s) appointed to provide the authority will log into the applicable pay event and approve the event. Only after this time will the registered agent have the ability to successfully lodge the pay event.