STP is an ATO reporting system requiring employers to report payroll information each time they pay employees.
Legislation: Taxation Administration Act 1953 | Category: Payroll Compliance
What is Single Touch Payroll (STP)?
Single Touch Payroll is an Australian Tax Office (ATO) reporting system that requires employers to report payroll information to the ATO each time they pay their employees. STP reporting includes salaries and wages, PAYG withholding amounts, and superannuation information. Since July 2021, all employers must report through STP regardless of size.
STP Phase 2, which commenced from January 2022, expanded reporting requirements to include more detailed information about employee payments, including breakdowns of gross amounts, allowances, paid leave, and employment conditions. This enables pre-filling of employee tax returns and provides the ATO with more comprehensive data.
Key Compliance Points for Employers
- STP reports must be submitted on or before pay day
- STP-enabled payroll software or a registered tax agent is required for reporting
- Employees access their year-to-date information through myGov — end-of-year payment summaries are generally not required
- Corrections should be made in the next pay run or through an update event
- Non-compliance can result in penalties
Frequently Asked Questions
What is Single Touch Payroll (STP)?
STP is an ATO reporting system requiring employers to report payroll information each time they pay employees.
Why is Single Touch Payroll (STP) important for employers?
Understanding single touch payroll (stp) helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
