Single Touch Payroll: Everything You Need to Know

Single Touch Payroll (STP) has changed how employers report payroll information in Australia.

Rather than reporting annually, employers now report payroll data to the Australian Taxation Office (ATO) each time employees are paid. This creates a more consistent and real-time reporting process.

This guide explains how Single Touch Payroll (STP) works and what it means for your organisation.

What is Single Touch Payroll (STP)?

Single Touch Payroll is an ATO reporting framework that requires employers to submit payroll information each pay cycle.

This includes:

• salary and wages
• Pay As You Go (PAYG) withholding
• superannuation information

STP replaces the need for annual payment summaries, with information instead reported throughout the year.

What payments are included in STP?

STP reporting applies to a range of employee-related payments, including:

• salary and wages
• director remuneration
• termination payments
• unused leave payments
• parental leave pay

Some additional information may also be reported where relevant, such as certain superannuation contributions or fringe benefit amounts.

How STP reporting works

Each time you process payroll, your system sends a report to the ATO.

This is usually done through STP-enabled payroll software, which:

• captures payroll data during processing
• formats the report in line with ATO requirements
• submits the report automatically after each pay run

At the end of the financial year, employers finalise their STP data instead of issuing separate payment summaries.

Options for meeting your STP obligations

There are a few ways to manage STP reporting:

Use STP-enabled payroll software

Most modern payroll systems support STP reporting and automate the process.

Engage a registered agent

A registered tax or BAS agent can manage reporting on your behalf.

This is often supported through structured payroll and bookkeeping services.

Access support options if needed

In some cases, employers may be able to:

• apply for additional time to transition
• request an exemption in limited circumstances
• use low-cost solutions designed for small employers

Why STP matters

STP improves the consistency and visibility of payroll reporting.

For organisations, this means:

• less reliance on year-end reporting processes
• more up-to-date payroll data
• clearer alignment with ATO requirements

However, it also requires accurate and consistent payroll processes throughout the year.

Common challenges with STP

Organisations may encounter challenges such as:

• incorrect payroll setup
• inconsistent data entry
• uncertainty around what needs to be reported
• delays in finalising year-end data

These are usually process-related and can be addressed with a structured approach.

What good looks like

A well-managed STP process should result in:

• accurate payroll data each pay cycle
• timely reporting to the ATO
• clear reconciliation between payroll and financial reports
• smooth year-end finalisation

This reduces compliance risk and improves overall financial visibility.

When to review your payroll setup

It may be time to review your STP processes if:

• payroll reports do not match financial records
• STP submissions are delayed or inconsistent
• year-end finalisation is difficult
• you are unsure if your system is set up correctly

A structured review can help ensure your payroll system is aligned with STP requirements.

Start a conversation

Single Touch Payroll simplifies reporting, but only when payroll systems and processes are set up correctly.

Hopscotch Accounting supports not-for-profits and SMEs with payroll setup, STP reporting, and ongoing compliance to ensure reporting is accurate and consistent.

Start a conversation about your payroll processes and STP obligations.

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