Single Touch Payroll (STP) Software

Single Touch Payroll (STP) is an ATO payroll reporting system that requires employers to report employee wages, PAYG withholding and superannuation information each time they run payroll. Reports are submitted through STP-enabled online payroll software, rather than being handled only at the end of the financial year.

Single Touch Payroll (STP) Phase 2 is the expanded version of STP reporting. It requires employers to send more detailed payroll information to the ATO, including income types, paid leave, allowances, deductions, salary sacrifice amounts, and some employment conditions.

Most Australian employers are required to report through Single Touch Payroll if they have employees. STP reporting is generally mandatory unless an employer has an approved exemption or deferral from the ATO. Growing businesses can use STP payroll software or work with a registered tax or BAS agent to meet their reporting obligations.

You can prepare for Single Touch Payroll by checking your employee details, confirming your payroll categories are set up correctly, and choosing STP payroll software that can report to the ATO. If you use Intuit QuickBooks, Single Touch Payroll is built in and supports STP Phase 2 reporting.

Single Touch Payroll affects your payroll by making ATO reporting part of each pay run. When you process payroll, employee wage, PAYG withholding, and super information is reported through your STP-enabled software. For many businesses already using payroll software, STP does not change how employees are paid—it simply changes how payroll information is reported.

Employers may be exempt from Single Touch Payroll only in limited circumstances, such as when the ATO has approved an exemption or deferral. This may apply to some employers with unreliable internet access, limited digital capability, or other exceptional circumstances. If you think your business may be exempt, check with the ATO or a registered tax agent.

Single Touch Payroll works by sending payroll information to the ATO each time you pay your employees. When you run payroll through STP-enabled software, details such as wages, PAYG withholding, and superannuation are reported securely to the ATO.

You do not always need an accountant to handle Single Touch Payroll, but professional advice can help if your payroll is complex. Intuit QuickBooks payroll software includes built-in STP compliance, so reporting happens automatically with every pay run. You can also work with a qualified accountant or bookkeeper if you need help with payroll setup, reporting, or ATO compliance.

From 1 July 2026, Payday Super will require employers to pay superannuation contributions on the same day as wages, rather than quarterly. This will have direct implications for how payroll is processed and reported through Single Touch Payroll.

For employers, the change makes accurate payroll data even more important. Super calculations, employee details, and payment timing will need to be managed closely each pay cycle, so using STP payroll software can help keep payroll and super information consistent.

Single Touch Payroll is important for small businesses because it helps make payroll reporting more accurate, consistent, and easier to manage. It can also help you keep employee pay records up to date throughout the year, while giving employees access to current income, tax and super information through myGov. This can reduce manual reporting at EOFY, as STP replaces the need to provide payment summaries to employees in many cases. STP is also generally mandatory for Australian employers, unless the ATO has approved an exemption or deferral.

Before setting up Single Touch Payroll, check that your business, employee, and payroll details are accurate. This includes tax file numbers, super fund details, bank account information, pay categories and employment details.

Reviewing these details before you enable STP can help reduce reporting errors and make your first STP lodgement smoother. If you’re moving from another payroll system, it’s also worth checking your year-to-date payroll figures before you start reporting through new STP software.