Single Touch Payroll (STP) is an Australian reporting system that allows employers to send payroll and superannuation information to the Australian Taxation Office (ATO) each time employees are paid.
What is Single Touch Payroll (STP)?
Single Touch Payroll (STP) is a government reporting framework that enables employers to report payroll information directly to the Australian Taxation Office (ATO) from their payroll software. Information such as employee earnings, tax withheld and superannuation details is reported as part of the payroll process each pay cycle.
STP was introduced to streamline payroll reporting and improve transparency for employers, employees and government agencies. Rather than relying on separate year-end reporting processes, payroll information is reported throughout the year as employees are paid.
For employers, STP is closely connected to payroll operations, record-keeping and compliance. Most organisations use STP-enabled payroll software to help manage reporting obligations and maintain accurate payroll data.
Things to know
- STP reporting is integrated into the payroll process and generally occurs each time employees are paid.
- Payroll information is reported directly to the ATO through STP-enabled software.
- STP reporting includes information such as employee earnings, tax withheld and superannuation details.
- STP has reduced reliance on a number of traditional end-of-year payroll reporting activities.
- Accurate employee and payroll data is essential for successful STP reporting.
FAQs
What information is reported through STP?
STP reporting generally includes employee earnings, tax withheld, superannuation information and other payroll data required by the ATO.
Do all employers need to use STP?
Most Australian employers are required to report payroll information through Single Touch Payroll using STP-enabled payroll software.
How does STP affect payroll processing?
STP reporting is typically built into payroll processes and software, enabling payroll information to be reported when employees are paid rather than through separate reporting activities.
Do employees benefit from STP?
STP gives employees greater visibility of payroll information by making pay and superannuation information more readily available through government services such as myGov.
What is STP Phase 2?
STP Phase 2 expanded the payroll information reported to government agencies, helping improve consistency across payroll, tax and superannuation reporting processes.
