What is Single Touch Payroll?

Single Touch Payroll (STP) is an Australian Tax Office (ATO) initiative...

It requires employers to report Year-To-Date (YTD) figures for salaries and wages, Pay-As-You-Go (PAYG) withholding, superannuation and other payments, to the ATO each time they pay their employees.

How does it work?

STP requires payroll information to be sent to the ATO via their SBR2 messaging channel, after each Pay Run.

The TASS STP solution will pass this information to an STP Gateway provider (Ozedi) using a licensed Application Programming Interface (API) connection.

The STP Gateway provider will interact directly with the ATO, to transmit STP data and retrieve STP response messages.

Why is TASS using a gateway provider?

The gateway provider looks after the messaging layer and services between TASS and the ATO’s SBR2 channel. This communication uses specialised message technologies (ebMS3.0 AS4) and requires high level whitelisting with the ATO. This also means that all connectivity with the ATO is done directly from within the TASS software, delivering a secure and streamlined solution and avoiding messy uploads.

Are there any costs associated?

There is no additional cost for the TASS STP functionality. There is, however, an annual cost for the API licence that is required to connect TASS to the STP Sending Service Provider (‘Ozedi’) who handle the messaging layer and services between TASS and the ATO.

The cost of this API is for the messaging services provided by Ozedi and the associated technical support.

Are we still required to send Tax File Number (TFN) declarations to the ATO?

TFN Declarations are now submitted in STP Pay Events. This covers new employees and updated TFN Declarations from existing employees.

When included in the STP Pay Event, submission of paper-based TFN Declaration Forms to the ATO will not be required.

What is a Pay Event?

A Pay Event is a mandatory report transmitted to the ATO from within TASS as the last step in completing each, and every, Pay Run.

How often is STP required to be submitted?

The frequency will be determined by your school’s pay cycle. An STP Pay Event is completed at the end of each Pay Run.

How does the ATO identify each employee?

The ATO uses a unique ‘Payroll ID’ for each employee. This is separate to the TFN — You don’t need to do anything. TASS will use the Employee Code to create this unique identifier. As a result, you are no longer able to change employee codes through the ‘Change Employee Code’ program.

If my Pay Event gets Rejected, can I process my next Pay?

No, you have not met your ATO reporting obligations. You can only start your next Pay Run if the ATO has accepted the Pay Event.

Does STP affect my Super?

No. STP reporting does not change your obligations or method for remitting Super. The Superannuation Liability for employees is included in each STP Pay Event.

Does STP affect my PAYG Withholding payments?

No. STP reporting doesn’t change your obligations or method for remitting PAYG Withholdings. This amount for each Pay Run is included in each STP Pay Event.

How do I fix an error in an employee’s Pay after it’s been submitted to the ATO?

You will need to process an adjustment envelope with the correction during the next Pay Run — this will be reported in the following Pay Event.