Managing payroll is about more than paying employees on time—it’s also about meeting your reporting obligations with the Australian Taxation Office (ATO). Single Touch Payroll (STP) simplifies this process by allowing employers to report payroll information directly to the ATO every time employees are paid.
If you’re an Australian employer, understanding STP can help you stay compliant while making payroll management more efficient.
What Is Single Touch Payroll (STP)?
Single Touch Payroll (STP) is an ATO reporting system that requires employers to submit payroll information electronically each time they process a pay run.
Using STP-enabled payroll software, details such as employee wages, PAYG withholding, and superannuation are automatically reported to the ATO. This real-time reporting reduces paperwork and helps keep payroll records accurate throughout the financial year.
How Does STP Work?
The process is simple:
- Process your payroll as usual.
- Your STP-enabled software prepares the payroll report.
- The report is sent securely to the ATO when the pay run is finalised.
- Employees can access their year-to-date payroll information through their myGov account.
Since payroll information is reported during each pay cycle, employers no longer need to complete many separate end-of-year payroll reporting tasks.
What Information Is Reported?
STP submissions generally include:
- Employee salaries and wages
- PAYG withholding
- Superannuation information
- Bonuses and allowances
- Year-to-date payroll figures
This gives the ATO an up-to-date record of your payroll throughout the year.
Benefits of STP
Single Touch Payroll offers several advantages for employers and employees.
For employers:
- Simplifies payroll reporting
- Reduces paperwork
- Helps meet ATO compliance requirements
- Saves time and reduces manual errors
For employees:
- Access payroll information through myGov
- View income statements online
- Receive more accurate and up-to-date payroll records
Common STP Mistakes
Even with automated payroll software, mistakes can happen. Common errors include:
- Incorrect employee details
- Wrong PAYG withholding amounts
- Missing payroll submission deadlines
- Outdated payroll software
- Incorrect superannuation information
Reviewing payroll regularly and keeping employee records updated can help avoid these issues.
Final Thoughts
Single Touch Payroll has made payroll reporting faster and more efficient for Australian businesses. By automatically reporting payroll information to the ATO every pay cycle, STP reduces administrative work while helping employers stay compliant.
Using reliable STP-enabled payroll software and maintaining accurate employee records will make payroll management easier and ensure your business meets its reporting obligations with confidence.