STP reporting requires the use of STP-compliant software to send data electronically to the ATO.
A common question that arises is whether employers can lodge STP reports through the ATO’s portal. Unfortunately, the answer is NO. STP has been designed so that information is reported directly from (STP-enabled) payroll or accounting software.
The way STP information is transmitted to the ATO depends on an employer’s software and essentially may be done in one of the following ways:
• Employers reports directly to the ATO through its STP-enabled payroll or accounting solution.
• A third- party (using STP-enabled software) reports on behalf of the employer.
There are two choices for STP reporting:
1. The employer reports directly to the ATO using its own STP- enabled software
STP reporting may be undertaken using an end to end solution, which allows an employer to run their payroll and transmit the STP information directly to the ATO from the employer’s software.
If an employer would like to manage STP reporting inhouse, they should review the following resources that will assist them in selecting their own software:
STP product register. The government has established the STP product register to help business find STP – compliant software that suits their circumstances. View the product register here.
No-cost and low-cost register. A range of no-cost and low-cost ($10 or less per month) solutions have been developed for micro employers (those with one to four employees) who need to report through STP but do not currently have STP ready software. The register for no-cost or low-cost STP solutions is available to view here.
2. Employer engages a third party to report on their behalf
Employers can outsource the STP reporting function. Warning – Payroll service providers undertaking STP reporting for employers must be registered tax or BAS agents. These agents are governed by the Tax Practioners Board. Refer to TPB(1) 31/2016 – Payroll Service Providers to view registered agents.
