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Single Touch Payroll (STP)

ATO compliance doesn't have to be complicated. QuickBooks payroll - powered by KeyPay is ATO approved and comes with built in STP compliance.

Single Touch Payroll (STP) for Small Business

What is Single Touch Payroll (STP)?

Implemented by the ATO (Australian Tax Office) in 2018, Single Touch Payroll is a way for employers to report wages, PAYG and super.

Instead of waiting until the end of the financial year, payroll info is reported every time staff get paid.

There are further STP changes coming into effect from January 2022, however ATO has granted all QuickBooks customers a deferral of these changes until the 28 February 2022. 

We have recently released some new updates in the platform to better prepare QB customers for STP Phase 2.

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What are the changes

These changes primarily relate to expanding reporting details provided to the ATO and include:

Greater detail of gross Wages, employment and taxation conditions, Visibility on income types and country codes and Child support garnishees and deductions.


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Allowance items

Additional allowance type codes will be added to meet the new reporting requirements. This will allow the ATO to assist employees when completing their individual income tax returns. 

Learn more

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Child support deductions

Previously, employers had to submit deduction reports to relevant child support agencies. New changes mean you will now report child support deductions as a pay event which removes separate reporting requirements. 

Learn more

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Income stream collection

You now need to group employee payments into income type, payment type & country codes (for specific income types). This is a new ATO term called, ‘income stream collection'.

Learn more

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Tax file number declaration

All relevant employee tax information will be incorporated into STP reporting. This means you will no longer need to submit tax file declarations to the ATO. 

Learn more

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Lump sum E letters

Previously, employers had to supply their staff with lump sum E letters at the end of the financial year. New reporting under STP Phase 2 means this data will be included in the pay event prior to finalising your employee income statements – this means Lump sum E letters are no longer required. 

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Paid leave

Paid leave will no longer be incorporated as part of gross earnings and will instead be reported using itemised leave type codes. 

Learn more

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Negative Year-to-Date (YTD) reporting

The ATO will allow negative YTD amounts to be submitted via STP. 

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Termination

You’ll need to include a reason for terminating employees. This change means you’ll no longer need to issue employment separation certificates to Service Australia. 

Learn more

How QuickBooks can help with STP compliance?

Discover the benefits of Single Touch Payroll and using QuickBooks Payroll powered by KeyPay.

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Streamline reporting

Automatically send payroll info each pay run

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Fast and accurate processing

No more manual data entry

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Easier at tax time

Save time and paperwork at the end of the financial year

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ATO approved

Send complete and ATO compliant reports with every pay run

How do I get ready for Single Touch Payroll Phase 2?

The new ATO legislation means that all employers will have to use STP compliant software to run payroll.

Learn more about the STP Phase 2 changes with QuickBooks here

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I don't have payroll software

You can add Quickbooks Payroll from just $5 per month, per employee paid** on top of a Quickbooks accounting plan.

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I'm an existing user

If you're a QuickBooks user, you're in good hands— unlike other providers, our integrated payroll solution is already 100% ATO compliant and Single Touch Payroll Phase 2 enabled. You can add Payroll to your plan from as little as $5 per month, per employee paid* See our Payroll plans here.

Find out how to enable STP in QuickBooks Online.

Build the right plan for your business

tick  Free unlimited support      tick  Cancel anytime 

  1. Add Payroll (optional)
  2. Choose your plan
  3. Checkout
Swipe to see plans >>
Please select accounting plan first in Step 1. Go back to accounting plan
Standard payroll
$/mo*
$monthly fee
+ $5 /mo per employee paid
  • Free onboarding sessionNEW
  • Employee portal
  • Employee mobile app
  • Timesheets
  • Single Touch Payroll reporting
  • Automated super payments
  • Leave management
Advanced payroll
$/mo*
$monthly fee
+ $5 /mo per employee paid
  • Free onboarding sessionNEW
  • Employee portal
  • Employee mobile app
  • Timesheets
  • Single Touch Payroll reporting
  • Automated super payments
  • Leave management
  • Award rates
  • Rostering
  • Time and attendance tracking

phone icon Call sales for further assistance 1800 917 771

Single Touch Payroll checklist
Download the handy STP checklist to help get your payroll in order.

How to switch on STP in QuickBooks

  1. Sign in to your QuickBooks account
  2. Select Employees and sign up to KeyPay (our integrated payroll partner)
  3. Select Payroll settings then Electronic lodgement and STP
  4. Select Enable Single Touch Payroll

For a more detailed look at how to set up STP, click here.

Onboarding Session

Easy set-up with free onboarding session

Get one on one expert guidance to take you from signup to payrun so everything is set up to suit your business needs.


Hear how QuickBooks is helping our customers withSingle Touch Payroll compliance

I love how QuickBooks brings efficiency to our payroll. Hours are logged on-site with the app and we receive it instantly.

Ana Saad Co-Founder - J&JJ Landscaping

We use QuickBooks for most of our clients. It's STP compliant and has the tools that the building industry needs.

Maria Cavallaro, Founder - Tradie Troopers

Frequently asked questions about Single Touch Payroll (STP)

Speak with our local QuickBooks team about our Payroll options and meeting Single Touch Payroll compliance 1800 917 771