Pay Cat Video Library

Connecting Your Payroll File to the ATO in Employment Hero Payroll

Written by Garth Belic | Jan 20, 2026 7:25:24 AM

Connecting Your Payroll File to the ATO in Employment Hero Payroll

Introduction

This video explains how to connect your Employment Hero payroll file to the ATO, ensuring seamless Single Touch Payroll (STP) reporting for your business. It guides you through setting up your business details, selecting the correct lodgment role, enabling electronic lodgment, and verifying that your ATO connection is working properly. The tutorial covers the steps for employers, registered tax or BAS agents, and intermediaries managing multiple employing entities. It also explains how to complete the STP registration process and highlights the importance of confirming your connection with the ATO before submitting reports. This guidance is relevant for SCHADS-compliant payroll processing and reporting.

Key Takeaways

  • Navigate to Payroll Settings → ATO Settings to access your business ATO details.
  • Identify the correct lodgment role: employer, registered tax/BAS agent, or intermediary.
  • Fill out the required fields based on your lodgment role to ensure accurate ATO identification.
  • Enable electronic lodgment after confirming your connection with the ATO to submit STP events and tax file declarations.
  • Complete the STP registration wizard and provide necessary information, including software ID and standing authority declaration.
  • Contact support if you encounter issues or have questions during the setup process.

Transcript

Introduction

We'll show you the exact process for connecting your Employment Hero payroll file to the ATO. We've guided hundreds of Australian businesses through this critical process, ensuring seamless STP reporting. In this tutorial, you'll learn how to set up your business details, enable electronic lodgment, and verify your ATO connection is working properly.

Accessing ATO Settings

To update the ATO settings, you can navigate to the ATO settings by going to the payroll settings and then ATO settings. From here, you'll see two tabs: the ATO settings and the Electronic Lodgment and STP tab. The details in the ATO settings section will be used to identify the business to the ATO during electronic lodgments.

Selecting Lodgment Role

The first step is identifying who will be lodging the reports to the ATO for the business. You can select the relevant option from these three: as the employer, as a registered tax or BAS agent, or as an intermediary for multiple employing entities.

"As the employer" should be selected where there is no registered tax or BAS agent submitting the reports on an employer's behalf and there is only one employing entity. The employer will then need to fill out the required fields.

The registered tax or BAS agent should be selected where an external tax or BAS agent is lodging the reports on behalf of the business. This applies even if there is more than one entity within the business. The tax or BAS agent will need to fill out the following two sections: the agent's details and the business details.

The intermediary should only be selected when an employer is lodging reports for multiple employing entities. Again, this is broken down into two sections: the intermediary details and the business details.

Electronic Lodgment and STP

Taking a look at the Electronic Lodgment and STP section, enabling electronic lodgment will allow you to lodge your STP event seamlessly to the ATO, as well as lodge employees' tax file declarations online and directly to the ATO. Before enabling electronic lodgment, you will need to contact the ATO and provide them with your software provider and software ID.

It is essential that your connection with the ATO has been established before you enable electronic lodgment to prevent issues with STP lodgments failing. Once the ATO has provided confirmation that the connection has been established, you can select "Enable Electronic Lodgment." This launches the STP registration wizard.

We can provide you a guide for completing these steps. You need to select the option used to establish the connection with the ATO from the STP registration process. Once the registration process is complete, additional sections should appear on this screen, such as the Business Management Software ID and the Standing Authority declaration.

Support

If you have any issues or questions, let us know at the support inbox or give us a call.

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