Single Touch Payroll Report

Saasu has ATO approval for our Single Touch Payroll (STP) solution by meeting the Requirements for digital service providers. Saasu is on the ATO’s STP Product Register list. Search the list using Ctrl-F in your browser for “Saasu”.

What is Single Touch Payroll?

Single Touch Payroll changes the way employers will report their salary and wages, pay as you go (PAYG) withholding, allowances, deductions and superannuation information to the Australian Taxation Office. Employers are now required to report after processing each payroll, rather than annually, as it was previously.

STP is available in your file in Saasu

There are no special settings that you need to enable STP feature in Saasu. It’s available on all files and the authentication with the ATO is done behind the scenes like this:

Saasu STP Report submitted > MessageXchange > SBR > ATO Portal

If you have more than one pay we suggest using Pay Runs, rather than submitting individual pay roll entries. Learn how to setup Pay Runs.

You can submit pays not in a Pay Run but these must be done one at a time.

Set up for STP

Review Employer Data

Confirm that your ABN, branch, address, state in shortform (e.g. NSW), postcode and phone number (including area code and no spaces) is entered on the File Identity page.

Cog icon > Settings for this file > File Identity

Review Employee Data

Confirm employee information is accurate – including name, address (including postcode), main phone number (including area code and no spaces), date of birth, and gender, on the Employee Details page (View > Employees > click ‘View or Edit Employee Details’ icon)

Review Pay processes

Check if you are paying employees correctly. This means using the payroll function in Saasu rather than generating pays via journal entries. The STP report that is submitted to the ATO only uses information that is generated from the pay items in payroll entries.

Please Note: Creating any custom Superannuation Pay Items will not be reportable through Single Touch Payroll to the ATO. We therefor recommend using the default item of “Superannuation Guarantee Contribution (SGC)”

It will be up to you to ensure that the information in the STP report is correct before it is submitted to the ATO. Saasu doesn’t do any validation to see if information is missing or correct.

Set Up Pay Runs

The Pay Run function in Saasu will be the most effective way to work with STP. So if you haven’t been using Pay Runs, and processing pays by adding individual payroll entries instead, now is to time to setup Pay Runs. Even if you only have a couple of employees, using Pay Runs will make your life much easier when using STP.

Set Allowances and Deductions types

If you have any Allowances or Deductions in your pay items then you will need to specify an Allowance or Deduction Type. You can now start going through your pay items and add the correct Type from the dropdown box for each relevant pay item. Go to (cog icon > Settings for this file > Manage Pay Items).

Lump Sum Payments Pay Items

There are new Pay Items on each file for the reporting of Lump Sum payments for eligible termination payments. We will only be supporting Lump Sum types A, B, D, E. If you have a custom Pay Item setup for these type of payments that you’ve used in the past, then you will need to start using the new inbuilt pay items instead. Only the inbuilt pay items will be picked up in the STP report.

About the Single Touch Payroll Report

Once you’ve processed your pay run, the next step is to submit that data to the ATO. You can do that by running the Single Touch Payroll Report. You can run this using a few different filters, depending on what report type you want. The report types are:

  • Regular Pay Event – this is the report you send to the ATO after you have processed your regular pays
  • Final FY ATO Pay Event – this is the report you send to the ATO after you have processed all pays and paid for a financial year, including any termination payment.
  • Replace ATO Pay Event – this will allow you to replace the most recent, successful Regular Pay Event you previously submitted. This is ONLY allowed for Pay Runs.
  • Pay Event History – this report will display a list of the historical lodgements. This includes information regarding status, acceptance or failure due to particular errors.

Submitting your STP report to the ATO

After you have processed your regular pay run:

  1. Click on Reports > Single Touch Payroll
  2. Click on the cog icon, select Regular Pay Event, specify the report settings and click Run.
  3. The screen will display the data that matches your settings, which you can check for accuracy.
  4. Ensure you tick the pays to be submitted (pay runs will be pre-ticked and can’t be modified) then click the Upload icon.
  5. Before you submit the report to the ATO, you will need to authorise the submission. This is done by agreeing to “Sign declaration with my email address” (this is the email address you sign into Saasu with) and click Submit.
  6. The ATO has a standard response time of up to 72 hours before the upload is accepted and successful. At times, this may be quicker and could be as little as 10 minutes. While the STP report is being processed, you can move away from this screen and continue to work on other things in Saasu.

Remember to come back to the Single Touch Payroll Report screen (Reports > Single Touch Payroll) about 10-15mins after you have submitted a regular Pay Event. This is to ensure that the ATO has accepted the submission, and that there are no errors that need further attention. If you haven’t moved away from this screen, you may need to refresh your browser to see the updated information.

Note: Once you have submitted a Pay Event to the ATO, you cannot submit any further Pay Events until the previous submission has been accepted or, if rejected, the submission result actioned.

Viewing submitted reports

  1. Click on Reports > Single Touch Payroll
  2. Click on the cog icon, Select Pay Even History, specify the date range and click Run
  3. The screen will display the data that matches your settings

Finalisations for a financial year
(or departing employees)

A Finalisation event can occur anytime during the financial year. It would usually be after processing the final pay cycle for a financial year.

When you run the STP report using the Final FY ATO Pay Event filter, you need to select the beginning and end of the specific financial year for pays you want to finalise. For example, 01 Jul 2018 to 30 Jun 2019.

The screen will display a list of employees who have a payroll entry for this financial year, and there hasn’t been a previous finalisation event sent to the ATO. The list will only show the latest information that has been submitted successfully via a Regular Pay Event for the selected financial year. Please note, this will show the most recent pay data based on the pay date, and not necessarily the most recent submission to the ATO. (This is to ensure if you may have uploaded an event out of order, the most recent pay data for this employee is marked as the final data).

Step by Step
  1. Click on Reports > Single Touch Payroll
  2. Click on the cog icon, select Final FY ATO Pay Event.
  3. Specify the Financial Year you are submitting. E.g  01/07/18 to 30/06/19
  4. Change the drop down box to “Pay Run” or “Manual Pays” depending on how you process your pays each month.
    1. If you are using “Pay Run” you then need to select the pay run which applies from the drop down box below.
    2. If you are using “Manual Pays” then change over the drop down box from Pay Run to Manual Pay.  (Note you will need to do this for every employee as Manual Pays need to be submitted individually)
  5. Now Click Run.
  6. The screen will now display the data that matches your settings. Here you should check it matches the data you have already sent through to ATO and your records for accuracy.
  7. Ensure you tick the pays to be submitted
    1. For Pay Runs this will be pre-ticked and can’t be modified.
    2. For Manual Pays Tick the box next to the Employee Name..
  8. To upload the file click the cloud icon on top right corner of this page.
  9. The next page will ask you to authorise the submission before submitting the report to the ATO. This is done by agreeing to “Sign declaration with my email address” (this is the email address you sign into Saasu with) and click Submit.
  10. Once processed you’ll receive confirmation at the top of your page that the report is in processing. The ATO has a standard response time of up to 72 hours before the upload is accepted and successful. At times, this may be quicker and could be as little as 10 minutes. While the STP report is being processed, you can move away from this screen and continue to work on other things in Saasu.
  11. You can come back to this screen to check on how it’s going by following the steps below.
    1. Click on Reports > Single Touch Payroll
    2. Click on the cog icon, select Pay Event History.
    3. Enter the date which you submitted the report
    4. Change the Pay Run/Manual Pay drop down box where appropriate
    5. Now Click Run
    6. Once you see “Pay event successfully accepted by the ATO.” you can start to upload another submission.
Please Note…
  • Pay Runs – You can only submit one pay run at a time. The screen will display the pay run name next to each pay record.
  • Payroll – You need to finalise any individual payroll transactions (not run as part of a pay run) separately, one at a time.
  • You cannot finalise payrun and payroll records in one pay event.
  • If an employee is part of a pay run, but has a manual payroll payment processed since the submission of the pay run, you will have to finalise them separately to the rest of the pay run.
  • You can only submit a Finalisation event for pays from FY 2018-2019 onwards. You will need to process PAYG Payment Summaries for 2017-2018 in the previous manner.

To submit the finalisation to the ATO:

  • Tick the checkbox for each employee that you want to include in the finalisation
  • Click on the Submit icon

You will find more information about Finalisations in this ATO help note.

FAQs

When did Single Touch Payroll reporting start?

The start date will depend on how many employees you have:

  • For employers with 20 or more employees, single touch reporting will be mandatory from July 1, 2018
  • For employers with 19 or less employees, single touch reporting will be from July 1, 2019

If you have less than 20 staff, and would like to start reporting via STP before 01/07/2019 then you can do so.

What withholding types can I report via STP in Saasu?

The Saasu STP reporting will be supporting most withholding amounts that are currently reported as part of individual non business payment summaries.

Unfortunately we will not be supporting the following withheld amounts* via STP:

  • Business and personal services income amounts including Voluntary Agreements, Labor Hire Arrangements and other specified payments
  • Foreign Employment income amounts including JPDA (Joint Petroleum Development Area)
  • Seniors and pensioners tax offsets

* Please refer to the ATO website for more details on each of these withholding categories.

Can I include Reportable Fringe Benefit Amounts (RFBA) and Reportable Employer Superannuation Contributions (RESC) via STP in Saasu?

Unfortunately the Saasu STP reporting cannot report on RFBA and RESC amounts, as these are not a requirement from the ATO for STP. You will need to manually submit these to the ATO, ensuring your manual payment summary for these amount’s does not include any other amounts that have been reported through STP.

Will I still need to submit or generate annual payment summaries for my employees?

If you use Single Touch Payroll reporting, you may not need to submit a payment summary report and provide payment summaries to your employees. The ATO should be able to provide more information about your specific requirements regarding payment summaries.

Can I make PAYG or SGC payments through Single Touch Payroll?

Unfortunately no. At the moment Single Touch Payroll is only a reporting solution and doesn’t handle payments. You will still need to make PAYG and superannuation payments separately.

What if I made a mistake on a report that I have already submitted to the ATO?

If you find a mistake on a pay event that was already submitted via the STP report and accepted by the ATO, then there are two ways you can make an adjustment.

Method 1 – Replace ATO Pay Event via STP

You are able to use the option Replace ATO Pay Event if:

  • If the previous Regular Pay Event you submitted was for a Pay Run
  • The Pay Event you need to replace is the most recent Pay Event and has previously been fully or partially accepted by the ATO.

To replace a previous pay event you will need to:

  1. delete the recent Pay Run that has the error (the whole pay run needs deleting as you’re unable to delete just the pay in error
  2. re-run the Pay Run for the correct date and date range
  3. run the STP report and choose the Replace ATO Pay Event
  4. check that the information for submission is correct
  5. click Submit

Note: You can’t make an adjustment by Replace ATO Pay Event (known as full file replacement) if any employee information submitted in the original pay event file has been changed by a subsequent pay.

Method 2 – Create an adjusting entry on the next pay

If you identify an error for a previously submitted Regular Pay Event on an individually created Payroll or a historical Pay Run, then you can add a correcting line item on the next pay for the employee concerned. When you submit this entry in your next Regular Pay Event, this will then be picked up.

Which users can access the Single Touch Payroll Report

Only users with the Full User Role can access the STP report. Any custom user roles, or roles with Read Only, or Denied will not be able to access this report.

What is MessageXchange?

MessageXchange is a secure SBR enabled gateway whitelisted by the ATO as STP compliant. Saasu will forward all STP reporting from Saasu to the ATO via MessageXchange.