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  • About Single Touch Payroll

    See our factsheet on Single Touch Payroll:

    Single Touch Payroll (STP) is a way of sending tax and super information to us from your payroll or accounting software each time you pay your employees. If you use payroll software, it may need to be updated to enable STP reporting. Talk to your payroll software provider to find out how to update your software.

    • Employers with 20 or more employees should be reporting to us through STP unless we have granted a later start date (a deferral). See Single Touch Payroll deferrals.
    • Employers with 19 or less employees have the option to report through STP for now. Legislation is currently before parliament to extend STP to all employers from 1 July 2019.

    When you use STP-enabled software you will send us your tax and super information each time you pay your employees. Your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly.

    The information you report will include your employees' salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding and superannuation information. See What you need to report.

    When you start reporting

    When you start reporting through STP:

    • You need to report your employees' tax and super information to us on or before each pay day. You will send this information from your STP-enabled payroll software. See How to report.
    • You will no longer need to provide payment summaries to your employees for the payments you report and finalise through STP. Payments not reported through STP, such as Employee share scheme (ESS), will still need to be reported on a payment summary.
    • You will no longer need to provide us with a payment summary annual report (PSAR) at the end of the financial year for the payments you report through STP.
    • Employees will be able to view their year-to-date payment information in ATO online services, which they will access through their myGovThis link opens in a new window account. Your employees can also request a copy of this information from us.
    • You will need to do a finalisation declaration at the end of the financial year. The information you report through STP will not be tax-ready for your employees or their registered tax agent until you make this declaration.
    • You will report your employees' super liability information for the first time through STP. The liability is the amount that you would normally provide to your employees on their payslip. Super funds will then report to us once you have paid the super amount to your employees' chosen or default fund.

    From 2020 we will pre-fill activity statement labels W1 and W2 for small to medium withholders with the information you report to us through STP. If you currently lodge an activity statement you will continue to do so.

    See also:

    How to report

    STP reporting is currently available through payroll, accounting and business management software. Most software providers are offering STP-enabled products.

    A number of low cost options (less than $10 per month) will also become available in the 2018-19 financial year. We will publish details about these options on our product register by 30 November 2018.

    Report from your current payroll software

    Your payroll software provider may offer STP reporting in one of the following ways:

    • An end-to-end solution, which allows you to run your payroll and send the STP information directly to us from your software.
    • A solution which allows you to run your payroll and send the STP information through a third party sending service provider (SSP) which is integrated into your software.
    • A solution that allows you to run your payroll and requires you to send the STP information through a third party sending service provider (SSP) outside your software.

    Your provider can let you know which solution they offer.

    Choose a new (STP-enabled) payroll solution

    You may need to choose new payroll software if your current software does not offer STP reporting.

    You may want to speak to your registered agent to find out which product best suits you.

    Ask a third party to report on your behalf

    You can ask a third party, such as a registered agent or payroll service provider, to report on your behalf.

    It is your obligation as an employer to make sure they will be reporting through STP.

    Use an alternate solution once it is available (for employers with 1-4 employees)

    We have asked software developers to build low-cost STP solutions at or below $10 per month for micro employers. We will publish a list of low-cost STP solutions once they are available.

    See also:

    Last modified: 29 Nov 2018QC 54702