Electronic Lodgment & Single Touch Payroll
A tutorial video is available to show you how to enable “Electronic Lodgment & Single Touch Payroll”: https://youtu.be/xf6ge1jSNrU
By default, you will see the Electronic Lodgement & Single Touch Payroll (STP) sections on this screen and both will be disabled.
Enabling electronic lodgement will then allow you to lodge employee tax file declarations and payments summaries online directly to the ATO. You must also enable electronic lodgement before you can enable STP.
To enable electronic lodgement you must contact the ATO on 1300 852 232 where you will be asked to quote your software provider and software ID (this information is located in the Enable Electronic Lodgement box as displayed above. The software ID is a unique number per business and so should not be shared with anyone else outside of the ATO. Once the ATO has provided confirmation, you will then click on “Enable Electronic Lodgement”.
The Electronic Lodgment & Single Touch Payroll process is powered by KeyPay. Please make sure you nominated “KeyPay” as the hosted SBR software provider with the ATO.
It is essential this step is completed correctly otherwise your STP lodgement will fail. Refer here for details on the error that will occur.
To enable STP, simply click on Enable Single Touch Payroll. The following popup will appear:
If you want to proceed, click on Confirm". Once that is done, you will notice additional sections appear on the screen, being:
- Business Management Software (BMS) ID: This is the unique ID that is used by the ATO to identify your business. You are only required to do something here if you were previously lodging STP events during the financial year using another payroll platform and want to migrate that platform’s BMS ID to this platform. Refer below on the rules for changing BMS IDs between payroll systems. To change the BMS ID, click on “Change” whereby the following popup will appear:
Enter the old BMS ID in the relevant field and click on “Save”.
*Note: If your old BMS ID is not in the format XXXXXXX-XXXX-XXXX-XXXX-XXXXXXXXXXXX, do not enter the ID in the field. Rather, you must email payroll support and provide them the ID as they will need to enter this manually with red styling.
Rules for changing BMS IDs during financial year
As stated previously, this applies to businesses that have already been STP reporting during the financial year and are now moving to another payroll system. The rules and scenarios outlining how to transition from one BMS ID to another mid financial year are as follows:
Option 1: You can change the BMS ID to the original/previous BMS ID if you transfer all YTD employee wages to the new payroll system. Instructions on how to do this are provided above.
Option 2: If you transfer all YTD employee wages to the new payroll system and you DO NOT want to revert to the original/previous BMS ID (that is, you want to keep the new BMS ID) you will need to zero the employee YTD values from the old BMS ID (and hence old payroll software). This will need to be done via an update event in order to prevent duplicate information being submitted to the ATO.
Option 3: If you do not transfer YTD employee wages to the new payroll system and you DO NOT want to revert to the original/previous BMS ID (that is, you want to keep the new BMS ID), you will be required to finalise employees reported under the original BMS ID. That is, the final pay event under the original BMS ID (ie the previous payroll software) will need to be marked as a final pay event.
- Standing Authority Declaration: This section will only appear if the registered TAX/BAS Agent is set as the ATO lodgement type. Where a business’s payroll is being prepared and submitted by an authorised registered agent (ie a TAX/BAS Agent), a declaration should be made by the employer or authorised employee at the time of providing the information to the Agent and the wording of the declaration should be in accordance with the requirements set out within the Taxpayer Declaration Guide. If this declaration has been completed, you can enter the details of this authority here. You are then able to use the Standing Authority when lodging pay events that include the same payroll information on a defined schedule. For example, an ongoing fortnightly pay run that includes the same payroll information each pay schedule where no ad-hoc payments are being made such as bonuses, commissions, back pays, etc. If the payroll information changes for a particular pay run, the Agent must request client authority prior to lodging the pay event.
To add a Standing Authority, click on “Add Standing Authority” whereby the following popup will appear:
(a) Enter the full name and email address of the person who has provided the standing authority, in the form of “[First Name] [Surname] / [email address]”;
(b) enter the date the written authority was provided; and
© click on “Save”.
It is not compulsory for a registered agent to have a Standing Authority with their client – that is, it is not essential for STP reporting. All this means is that before you lodge a pay event, you will need to request client authority from within the system. The person(s) appointed to provide the authority will log into the applicable pay event and approve the event. Only after this time will the registered agent have the ability to successfully lodge the pay event.