Single Touch Payroll
Single Touch Payroll (STP) makes reporting tax and superannuation information to the ATO easier.
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All employers need to use STP
All employers need to report their payroll information to us through STP.
This means you:
- report payroll information to us each time you pay your employees
- report super information to us
- won't need to give your employees a payment summary at the end of the financial year for the information you've already reported and finalised through STP.
Start payroll reporting through STP now
You can start reporting now by using your current payroll or accounting software if it's STP-enabled or by choosing one that is. Talk to your software provider, or visit their website, to find out what you need to do.
If you don’t currently have a payroll software, you can talk to a registered tax or BAS agent for advice. They can help you with options to suit your circumstances. You can also ask a payroll service provider or your registered agent to report through STP software on your behalf each payday.
Employers with between one and four employees can find no-cost and low-cost options for their STP reportingExternal Link.
Once you start STP reporting, you need to keep reporting each time you pay your employees. You need to finalise your employees' STP data by 14 July each year so they can access their information to complete their income tax return.
Expanding data collected from STP
STP is being expanded to include additional information.
The expansion of STP, also known as STP Phase 2, will make reporting easier for employers who need to report information about their employees to multiple government agencies. It will also help Services Australia’s customers, who may be your employees, get the right payment at the right time.
The mandatory start date for Phase 2 reporting is 1 January 2022.
We are working with software providers who are updating their software to support Phase 2 reporting. They will update your STP-enabled software for you.
Providers who need more time to update their software can apply for a deferral for their customers. Your provider will let you know if they have a deferral. This deferral will also cover you.
Flexible approach to transition
To support you with the transition to STP Phase 2, we will be flexible based on your business readiness and individual circumstances.
If your provider's software is ready for 1 January 2022, you should start Phase 2 reporting if you are able to. However, as long as you start Phase 2 reporting before 1 March 2022, you will be considered to be reporting on time. You won't need to apply for more time.
In addition, you won't be penalised if you make genuine mistakes in the first year of Phase 2 reporting until 31 December 2022. This includes employers who have already started Phase 2 reporting.
If you still need more time
You can apply for more time past your provider's deferral if you need more time to transition. You'll be able to apply from December 2021. Registered agents will also be able to apply.
If you can start reporting by your provider's deferral date, you don't need to apply for more time.
Payments made to people directly related to the business (closely-held payees)
You need to report payments to all employees and any payees directly related to the business (also known as closely held payees) through STP. Closely held payees may include a family member, director, shareholder or a beneficiary of a trust. If you have other employees (also known as arm's length employees) they must be reported through STP on or before each payday.
Quarterly reporting
You may be eligible to report through STP quarterly if you are a micro employer (you have between one and four employees) and are experiencing exceptional circumstances. Your registered agent needs to apply for this concession on your behalf.
You may also be eligible if your business has irregular employment patterns, such as large seasonal increases.
Exemptions
There are exemptions to STP reporting available in special circumstances. Check with your registered tax agent if you think you may qualify.
Exemptions are for an agreed period of time. We'll review your exemption before it expires.
Support for employers
Support is available for employers transitioning to STP reporting (including those who are not yet using STP-enabled software). You can:
- talk to your registered agent
- phone us on 13 28 66
- speak with us in your preferred language by calling our Translating and Interpreting Service (TIS National) on 13 14 50 for help with calling us on 13 28 66.
Single Touch Payroll (STP) is the way employers need to report tax and super information to the ATO.