Implementing Single Touch Payroll in Xero
Single Touch Payroll starts on 1 July 2018 for businesses with 20 or more employees. Xero is ready for the implementation, but though the software is automated there are still a few things you need to do ahead of time.
- Review your contact information – ABN, Address etc.
- Review all your Employee Details including addresses and tax file numbers.
- Register your SSID (Software Service ID) with the ATO. During the Single Touch Payroll setup, Xero will display your SSID number. You need to provide it to the ATO in one of two ways:
- Call the ATO and notify them of your SSID number
- Log in to the ATO Access Manager using your Auskey and nominate Xero as your software service provider. We will notify the ATO of your SSID number.
Once set up, each pay run will give you the option to report a payment to the ATO, and your payroll information will be automatically filed with the ATO.
Ensure your data is checked and accurate however, as you’ll only be able to revert the latest posted pay run after the system goes live.
Correcting Errors with Single Touch Payroll
Don’t fret – you will be able to correct payroll errors with single touch payroll. This can be done a few ways depending on what you are amending. We will provide further instructions on this closer to 1 July 2017 to assist you with this.
Payment Summaries with Single Touch Payroll
If you are using Single Touch Payroll, you may not have to provide payment summaries. You need to provide a payment summary for any payments not reported through Single Touch Payroll. If you do not need to report anything further and do not wish to prepare payment summaries, you will need to make a finalisation declaration. This declares that you have provided all required information for the financial year through your Single Touch Payroll reporting. You can do the finalisation declaration at any time during the financial year, or after the financial year up to 14 July.
If you need assistance on implementing this, please reach out to your account manager at Evolve.