Single Touch Payroll

The ATO Website states that:

‘The STP pay event is an approved form submitted to the Commissioner of Taxation, and requires the following each time it is lodged:

  1. A declaration that the information contained in the approved form (the STP pay event or update event) is ‘true & correct’.
  2. The declarer is authorized to lodge the approved form.’

Employers using the STP engagement authority are able to provide the above authority which is valid for up to 12 months, rather than having to provide an authority for each pay event.

To be eligible to provide a registered agent with the STP engagement authority, the employer must not:

  1. Have any overdue activity statement lodgements.
  2. Have any outstanding debts unless they are subject to payment arrangements or review.
  3. Be the subject of ATO compliance activity for PAYG withholding within the last two years.
  4. Company directors must not have been issued with a Director Penalty Notice in relation to the company or any other company where they are or have been a director.

The STP engagement authority does not apply to other approved forms or the finalization declaration.

A registered agent must still obtain a signed declaration in writing from an employer before making the finalization declaration on behalf of the employer at the end of the financial year.