Single Touch Payroll (STP) Set Up Post Conversion

Single Touch Payroll (STP) Set Up Post Conversion

To identify the best STP process for your business, please review the scenarios below and choose the option that most closely aligns with your situation. BMS ID and the employee ID numbers can generally be found at the ATO Portal.
WarningXero's API does not allow us to import terminated employees Employment Termination Payment (ETP) balances, so where employees have been terminated during the current financial year, their STP reporting and finalisation should be completed in the source software.

Our recommendation is to finalise STP in the source system up to the conversion date, then report and finalise STP in Xero for payroll processed after the conversion.

While payroll opening balances are imported into Xero to support year-to-date reporting, we generally do not recommend relying solely on those balances for full-year STP finalisation. Finalising each period in the system where it was originally processed can help reduce complexity and minimise the risk of reporting discrepancies.

NOTE: These recommendations below come directly from the Xero support team and are designed to provide the most relevant information regarding STP reporting and finalisation. Please note that while all care is taken in providing this guidance, the links and information may be updated from time to time.

Xero STP caters for the following scenarios:
  • Please see here if STP has NOT been used in the prior accounting package and you have not submitted half-year PSAR.
  • Please see here if STP used STP in the prior accounting package and you have sent an update to the ATO
  • Please see here if STP has NOT been used in the prior accounting package and you HAVE submitted a half-year PSAR.
  • Please see here if STP has been used HOWEVER you have reported NIL amounts
  • Please see here if STP was not used in the prior accounting package and you WILL NOT use Xero for year-end 
Please note if there has been no pay run in the financial year STP finalisation will not be possible. To rectify this you can run a $0 payrun.

Once you have identified a suitable method, post conversion use the STP wizard provided in Xero to state whether these balances have been previously reported in another accounting software, along with stepping you through the additional steps to report STP through Xero.

If you complete a finalisation in the source software you need to ensure to indicate this during the STP wizard so you do not report these twice as it will overstate to the ATO the employees earnings. 

Alert
Once STP has been finalised please check that the figures supplied to the Australia Taxation Office are correct for all employees, pay attention to those with Employment Termination Payments. 

Whilst we hope that this information helps, for any further assistance with STP reporting/finalisation in Xero please contact the Xero Support team directly. To do this visit support.xero.com.  You will need to login into Xero and send a support request from there.  

End of year finalisation is typically required to be completed prior to 14 July each year. For more information please refer to the Australia Taxation Office.


InfoPlease see here for how payroll information is converted - this applies to Australian conversions only.