Single Touch Payroll (STP)

Single Touch Payroll (STP) is an initiative by the ATO which, in simple terms, means that any time you process employee-related pay data, the ATO needs to be notified electronically at the time the payment is made.

From 1 July 2018, the Federal Government requires all businesses with 20 or more employees to use STP. Businesses with fewer than 20 employees are required to make the transition from 1 July 2019 but may choose to Opt-in at an earlier date if they wish. At it’s most simple, each time you make a payment subject to withholding or update payment related data, you need to tell the ATO.

This happens when you:

  • Apply a pay run where you pay employees
  • Make a supplier payment that includes a voluntary withholding amount
  • Update an employee’s data that could affect their tax information

System settings determine if you are prompted to send this information on demand via a menu option.

As an employer, you no longer need to issue payment summaries for employee activity after you start using STP. Employees with any questions can be directed here, where they can read more information.

STP Reports are available. For more information please view SA4422 - STP Dashboard.