Single Touch Payroll changed how Australian employers report payroll information to the Australian Taxation Office. Instead of annual summaries, employers now report salary, wages, PAYG withholding, and superannuation information each pay run.
How STP Works
Each time you pay employees, your STP-enabled payroll software sends the required information directly to the ATO. This happens automatically as part of your regular pay run process. Employees can then see their year-to-date information through myGov.
STP Phase 2
STP Phase 2 expanded reporting requirements to include more detailed income types, employment conditions, and income components. This allows Services Australia to use STP data for social security purposes and reduces the need for employees to provide income details separately.
Benefits of STP
For employees, income statements are available in myGov, reducing the need for payment summaries. For employers, it streamlines reporting and reduces end-of-year workload. For the ATO, it provides real-time visibility into payroll data for compliance purposes.