Single Touch Payroll (STP) Overview

What is Single Touch Payroll (STP)?

Single Touch Payroll (STP) started on 1st July 2018 for employers with 20 or more employees and 1st July 2019 for employers with 19 or fewer employees and is a mandatory obligation. Single Touch Payroll (STP), is an Australian Government initiative to reduce employers' reporting burdens to government agencies. With STP, you report employees' payroll information to us each time you pay them through STP-enabled software. Payroll information includes:

  • salaries and wages
  • pay as you go (PAYG) withholding
  • superannuation.

 

What is STP Software?

STP comes in many options, such as Careview, Shiftcare etc. If you do not have an electronic Client Management System, then you are able to follow the steps below to get ready for STP.

1. Work out how you will report through STP
The first step is to work out how you will report through STP. This may depend on the size of your business and if you currently use payroll or accounting software.You can submit your payroll data through your STP-enabled software yourself or use a service provider to do it for you.

Do it yourself
You can use STP-enabled software to submit your payroll data – you may already be using software that's STP-enabled.
You can find software solutions on the STP product register (see Software solutions for STP).If you’re an employer with 1–4 employees, you can choose a no-cost or low-cost STP solution. There are also concessional reporting options available to you.

If you currently use STP-enabled software, go to step 2 below.
If you don't use STP-enabled software, talk to your tax or BAS agent for advice on choosing the right product to suit your business needs.

Use a service provider
You can ask a third party, such as a registered tax or BAS agent or a payroll service provider, to report through STP for you.

2. If you use payroll software, talk to your provider
Find out how your payroll software will offer STP reporting. This may be through an update to your existing software, or an additional service.Older software products, such as those purchased off-the-shelf, may not be updated to offer STP reporting. Your provider will tell you which of their products offer STP.

Remember to:

  • find out what support they will give you to help your transition to STP
  • upgrade or install your software when ready
  • subscribe to any communications they provide – for example, email, newsletter or social media updates


3. Talk to your staff about STP
Check that the right people in your business know about STP – especially the person or people responsible for running your payroll. Ensure you are:

  • paying your employees correctly
  • calculating your employees’ super entitlements correctly
  • addressing overpayments correctly
  • maintaining accurate information, including names, addresses and date of birth records.

Fixing any errors in your payroll now will help you report successfully. At the end of the financial year, you won't need to provide your employees with a payment summary (or send a payment summary annual report to us) for information you've reported and finalised through STP. You should tell your employees not to expect a payment summary and that instead, their information is available via myGov or through their tax professional.

If you're an employer with 19 or fewer employees, you don't need to start reporting for closely held (related) payees until 1 July 2021. However, you can start reporting now if you are ready. There is no need to apply for a deferral. If you have arms-length employees, you should have started reporting these employees from 1 July 2019.


4. If you need more support
If you need more support, you can: