Single Touch Payroll (STP) in Australia – What It Is, How It Works & Employer Obligations

Single Touch Payroll (STP) is the Australian government’s digital system for reporting employee wages, PAYG withholding, and superannuation directly to the Australian Taxation Office (ATO) every time you pay your staff.

STP is mandatory for all employers. It replaced year-end payment summaries and now happens in real-time. At Ozobooks, we automate your STP lodgements, avoid mistakes, and help you stay fully ATO-compliant.

What Must Be Reported via STP?

Every time you run payroll, STP reports the following to the ATO:

• Gross wages and salaries
  
• PAYG withholding
  
• Superannuation liabilities
  
• Bonuses and allowances
  

All this is lodged automatically through your STP-enabled payroll software.

Key STP Deadlines

• Each payday: Lodge STP report on or before the date employees are paid
  
• EOFY: Finalise income statements in your payroll software by 14 July
  

STP Phase 2 Updates

As of 2023, STP Phase 2 requires:

• More detailed income types (e.g. bonuses, paid leave)
  
• Separate reporting of super amounts
  
• Tax file number declarations via STP
  

Ozobooks stays current with STP Phase 2 compliance so you don’t miss a beat.

STP vs PAYG Summary Reports

Feature	STP	PAYG Annual Summary
Timing	Real-time (each pay run)	Year-end
Method	Digital via payroll software	Manual or electronic reporting
Still Required?	No longer needed with STP	Replaced by STP finalisation

How Ozobooks Helps

• Sets up STP-compliant payroll software
  
• Automates reporting for every pay run
  
• Monitors ATO lodgement status
  
• Finalises income statements at EOFY
  
• Troubleshoots errors before they reach the ATO
  

FAQ:

Q1: Is STP mandatory for all employers?
Yes. Even if you have just one employee, you must use STP.

Q2: Can I lodge STP manually?
No. You must use ATO-approved STP-enabled payroll software.

Q3: Do I still need to give payment summaries?
No. STP replaces the need for annual payment summaries.

Q4: What if I make a mistake in an STP report?
You can submit a correction in your next regular pay run. Ozobooks helps you fix it fast.