Home / BAS Agent's Blog / How to set up STP in your accounting software – part 1 – Xero

How to set up STP in your accounting software – part 1 – Xero

If you’re a small employer with 19 employees or less, you have until 30 September 2019 to connect your accounting software to the ATO for Single Touch Payroll (STP) purposes. If you haven’t yet done so because you simply don’t know how to do it, then this blog is for you! This will be a four-part series beginning with Xero software. We will cover Saasu, MYOB and QuickBooks Online in subsequent blogs.


Connecting your Xero file for STP

Before proceeding with the connection, it is advised that you review and update your organisation details and also all employee details like dates of birth, tax file numbers and residential addresses. It is also advised that you check your payroll set up especially pay items and ensure they are correct. Your tax professional can assist with this if necessary.

Here are the steps you need in order to connect:

  1. In the Payroll menu, select “Pay employees”.
  2. In the message about Changes to the way you report payroll information to the ATO, click “Get started”.
    If you don’t want to opt in right now, close the message by clicking Remind me later. To reopen the message, click Setup Single Touch Payroll.
  3. Click Opt in to confirm.
  4. Review your organisation details. If necessary, click Update Organisation details. Xero will redirect you to the Organisation details page. Otherwise, click Continue.
  5. To connect your Xero account to the ATO, call the ATO on 1300 852 232. If you use the ATO business portal or have a myGov account, you can also log into Access Manager and nominate Xero as your software service provider there – a bit easier than calling the ATO!
  6. Provide the ATO with the proof of ownership listed in Xero’s prompt, including your Australian Business Number (ABN) and Software ID (SSID).
  7. Select the checkbox to confirm you’ve contacted the ATO to connect your Xero account.
  8. Click Register.

Xero will redirect you back to the Pay employees page. You’ll now see an STP filing column in the Pay Run History table.

Once you’re setup, the option to report a payment to the ATO will be presented for each pay run and your payroll information will be filed with the tax office each time.

When you approve a payrun, you will see a “File” button. Click the button to report via STP.

I need more information

No problems! Here is the link to the Xero blog about connecting for STP – includes details for business owners and tax professionals connecting on their clients’ behalf.

And here’s a video from Xero explaining the details in simple format.


In part 2 of our blog series, we will look at how to connect MYOB software for STP purposes.