Single Touch Payroll (STP) is a simple way to report your employees’ payroll information to the ATO and keep your business compliant. Tell me more about STP.
Setting up doesn't take long and can be done by whoever processes pays for your business. If a tax or BAS agent looks after your payroll, they'll need to complete the steps below to set up STP on your behalf.
If you pay employees using more than one MYOB Business file, you'll need to set up STP in each file.
What to expect
When you set up STP, here's what'll happen:
Your business, employee and payroll details will be checked to make sure they meet the ATO's requirements.
You'll then notify the ATO that you're using MYOB to send your payroll information.
You can then add other people who process your payroll so they can also send payroll information to the ATO.
OK, let's start by checking your payroll details.
To check your payroll details
Go to the Payroll menu and choose Single Touch Payroll reporting.
Click Get started to check your payroll details for any issues. What gets checked?
If no issues are found, you're ready to Notify the ATO for Single Touch Payroll reporting.
If any issues are found, click View errors to see the details on the Single Touch Payroll setup errors page.
Fix all the issues listed under Business details, Employee information and ATO reporting categories:
Business details – Click Edit business details, make the required changes, and click Save. Learn more about your Business settings.
Employee information – Click the employee's name, make the required changes, and click Save.
Learn more about Updating an employee's details.
Click the pay item's name, choose the applicable ATO reporting category, and click Save.
To run the check again, either click Refresh on the Single Touch Payroll setup errors page, or repeat the above steps.
When no more issues are found, click Get started.
You can now continue setting up STP by notifying the ATO for Single Touch Payroll reporting.
When you set up STP, the following details are checked in MYOB to make sure they meet the STP requirements.
What gets checked
ABN (if you only have a Withholding Payer Number (WPN) the ATO has exempted employers with a withholding payer number from reporting under the STP framework until 30 June 2033)
GST branch number (if you have an ABN you'll have a branch number – if unsure, check with the ATO). Learn more on the ATO website
You can access this information in MYOB by clicking your business name > Business settings.
Employees paid in the current and previous payroll year are included in the payroll check, including inactive and terminated employees.Here is the information that's checked for your employees (accessed via the Payroll menu > Employees > click an employee).On the Contact details tab:
Surname or family name
On the Payroll details tab > Employment details section:
Date of birth
On the Payroll details tab > Taxes section:
Tax file number
Do you employ working holiday makers? If you choose Working holiday maker as the Income type, you'll also need to choose the worker's Home country (Country code). Also check that the correct Tax table is assigned to working holiday makers based on your business's working holiday maker registration status.
Wages and salary, superannuation and deduction pay items used in the current and previous payroll year are included in the check. You can access your pay items via the Payroll menu > Pay items.Each of these must have an ATO reporting category assigned. By default, this is set to To be assigned, so you know what pay items still need assigning.How to assign ATO reporting categories
Each payroll software is identified using a Business Management Software (BMS) ID. When you set up STP, the ATO are notified of your BMS ID.
If your business has previously reported via STP in the current payroll year using another MYOB or non-MYOB payroll software, when you set up STP in MYOB you must notify the ATO of the BMS ID of your previous software. Otherwise your employees' year-to-date (YTD) payroll information will be reported twice to the ATO, and no-one wants that...
Transferring your BMS ID lets the ATO know you've changed payroll software, and moves your employee's year-to-date payroll amounts under your new BMS ID at the ATO end. If you haven't already, make sure you've entered your employee's pay history for the current payroll year into MYOB.
To find your previous BMS ID
You or your tax/BAS agent can find your previous BMS ID via the ATO's online services.
Log into the ATO's online services.
Go to Employees > STP reporting (agents go to Business > STP reporting).
Click the dropdown arrow next to one of your STP reports.
Copy the Business Management software (BMS) ID so you can paste it into the Previous software BMS ID field in MYOB when prompted (see above).
You'll know you're set up if you can access the STP reporting centre (Payroll menu > Single Touch Payroll reporting). In the top-right corner you'll also see whether you're reporting on STP Phase 1 or 2. How to move to STP Phase 2.