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Intuit
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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.

If you have selected As the Employer, you will be required to complete the following information:

  • ABN
  • Branch Number*
  • Name
  • Address Line 1
  • Address Line 2*
  • Suburb
  • Contact Name
  • Signatory Name* (only required to be completed if you want the name on the payment summaries to be different to that entered in the 'Contact Name' field above)
  • Phone Number
  • Fax Number*
  • Is this employer exempt from FBT under section 57A of the FBTAA 1986? (If you select Yes here, a dropdown list will appear and you will need to select what exemption the business falls under. This setting is crucial as it will be used in determining what FBT amounts are exempt and taxable when submitting pay data to the ATO).

Note: items marked with an asterisk (*) are not mandatory.

Note: The ATO have reported that users lodging STP reports on behalf of clients are considered to be providing a payroll service and will therefore need to be registered as an agent with the Tax Practitioner Board (TPB).For further information, visit Registered agents providing a payroll service on ato.gov.au.

This setting is broken up in 2 sections: (a) the TAX/BAS Agent details and (b) the Business details. The business details fields required to be completed are identical to the As the Employer details above.

The additional details required to be completed relate specifically to the TAX/BAS Agent:

  • Tax Agent Number
  • ABN
  • Contact Name
  • Phone Number
  • Contact Email

All the TAX/BAS Agent fields are compulsory. You will not be able to save the ATO Supplier Settings without completing these details.

This setting is broken up in 2 sections: (a) the Intermediary details and (b) the Business details. The business details fields required to be completed are identical to the "As the Employer" details above.The additional details required to be completed pertain specifically to the Intermediary themselves and are as follows:

  • ABN
  • Contact Name
  • Phone Number
  • Contact Email

You can choose one of the employing entities to act as the Intermediary or another entity of the business. All the Intermediary fields are compulsory. You will not be able to save the ATO Supplier Settings without completing these details.

 

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 or Update your details through Access Manager

You should be prepared with the following information:

  • proof of record ownership (e.g. personal TFN, date of birth, address, recent ATO-generated notice);
  • Your Australian business number (ABN) or, if you are a registered tax agent, you can use your registered agent number (RAN);
  • The name (Keypay) or ABN (70 154 693 955) of your software provider
  • your unique software ID.

Note: If a registered agent or intermediary is lodging STP events on behalf of the business, the ATO connection MUST be against the registered agent or intermediary's record, NOT the business' record. So, in relation to the second point above, when referencing ABN - this will be the ABN of the registered agent or intermediary.

Log in to Access Manager using your Administrator AUSkey or myGov credentials if you are the eligible associate or authorised staff of the business and follow these steps:

  1. Select My hosted SBR software services from the left-hand menu;
  2. Select Notify the ATO of your hosted service
  3. Search for KeyPay in the list, or alternatively search by entering KeyPay
  4. Select the ABN link for KeyPay
  5. Enter the software ID and select Next
  6. Read the Notification statement then select Save

A green success message will appear on the next screen to confirm success.

Frequently Asked Questions

Q: What if I have employing entities within my business?

A: Each Employing entity's ABN will need to be registered and then enabled within the payroll software. NOTE: the software ID for each employing entity is the same - this is correct and intentional.

Q: What if I use the same (business/employing entity) ABN across multiple business records?

A: The software ID in each payroll business record is unique. The ABN will need to be registered for each different software ID.

Q: Which ABN do I need to register? The business ABN or the supplier ABN?

A: It is the business ABN that must be registered. An authorised contact of the business must contact the ATO to register. NOTE: The Tax agent is NOT permitted to contact the ATO on behalf of the business.

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

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

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.

Business Management Software (BMS) ID:

This is the unique ID that is used by the ATO to identify your business.

 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.

 

 

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